The Golden Rule of Separation of Duties Is

question 31

Multiple Choice

The golden rule of separation of duties is:

• A) that management should never, even temporarily, have control over the employee payroll process.
• B) that management should never, as a group, have input on the audit committee.
• C) that the accounting staff should never have even temporary control over operational resources.
• D) defined in the Generally Accepted Accounting Principles and further refined in several FASB statements.

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Definitions:

Required Return

The smallest anticipated return that an investor looks to obtain by putting money into a certain asset, factoring in the risk entailed.

Annual Dividend

An annual dividend is the total amount of dividend payments a shareholder receives from a company in one financial year.

Constant Dividend

A dividend policy in which a company pays out a fixed amount of dividend per share irrespective of its financial performance.

Rate of Return

The profit or deficit realized on an investment over a certain time, denoted as a percentage of the investment's beginning price.