A Company Employs Three Accounts Payable Clerks and One Treasurer

question 1

Multiple Choice

A company employs three accounts payable clerks and one treasurer.Their responsibilities are as follows: Which of the following would indicate a weakness in the company's internal controls? $$\begin{array} { l l } \underline { \text { Employee } } & { \underline { \text { Responsibility } } } \\\text { Clerk 1 } & \text { Reviews vendor invoices for proper signature approval. } \\\text { Clerk } 2 & \text { Enters vendor invoices into the accounting system and verifies } \\&\text { payment terms. } \\\text { Clerk } 3 & \text { Posts entered vendor invoices to the accounts payable ledger for } \\& \text { Payment and mails checks. } \\\text { Treasurer } &\text { Reviews the vendor invoices and signs each check. }\end{array}$$

• A)Clerk 1 opens all of the incoming mail.
• B)Clerk 2 reconciles the accounts payable ledger with the general ledger monthly.
• C)Clerk 3 mails the checks and remittances after they have been signed.
• D)The treasurer uses a stamp for signing checks.

Comprehend the significance of succession planning and its role in ensuring leadership continuity.

Recognize the barriers to career advancement, such as the glass ceiling, and strategies to overcome them.

Understand the purposes and outcomes of different types of development assignments and their relevance to skills enhancement.

Appreciate the importance of coaching as a tool for addressing developmental needs and enhancing managerial effectiveness.

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Definitions:

Fixed General Factory Overhead

Refers to the regular, consistent costs incurred by a factory that are not directly tied to the level of production, such as rent and salaries of permanent staff.

Variable Production Costs

Variable production costs refer to expenses that change in direct proportion to the volume of production, such as raw materials and labor costs.

Sales Commissions

Payments made to sales personnel based on the sales volume or value they have achieved.

Opportunity Cost

The potential benefit that is given up when one alternative is selected over another.