Sound Internal Control Can Be Described as Separating All of the Following

question 52

Multiple Choice

Sound internal control can be described as separating all of the following duties and responsibilities except for:

• A)transaction authorization.
• B)recordkeeping.
• C)custody of, or direct access to, assets.
• D)hiring of employees.

---

Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period which is not yet sold.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in inventory management.

Days' Sales

A metric that calculates the average time it takes for a company to convert its inventory into sales.

Average Daily Cost

This measures the average amount spent per day over a specified period, often used in budgeting and financial planning.