Which of the Following Controls Would a Company Most Likely

question 18

Multiple Choice

Which of the following controls would a company most likely use to safeguard marketable securities when an independent trust agent is not employed?

• A) The investment committee of the board of directors periodically reviews the investment decisions delegated to the treasurer.
• B) Two company officials must be present to access marketable securities, which are kept in a bank safe-deposit box.
• C) The internal auditor and the controller independently trace all purchases and sales of marketable securities from the subsidiary ledgers to the general ledger.
• D) The chairman of the board verifies the marketable securities, which are kept in a bank safe-deposit box, each year on the balance sheet date.

Understand the concept and application of styles in Word documents.

Comprehend the manipulation of table properties and column boundaries.

Identify ways to distribute a document digitally.

Recognize the methods to modify graphic properties in Word.

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Definitions:

CCA Class

A grouping within the Canadian Capital Cost Allowance system used for categorizing depreciable assets for tax purposes.

After-tax Operating Income

The profit a company generates from its core business operations after taxes have been subtracted, excluding non-operating income and expenses.

Equivalent Annual Cost

A financial analysis method used to compare the cost-effectiveness of different investments with unequal lifespans by converting their costs into an annualized format.

Required Return

The minimum annual percentage earned by an investment that will induce individuals or companies to commit money to the investment. It is also known as the cost of capital when applied to investment appraisal.