Which of the Following Policies Constitutes a Control Weakness Related

question 31

Multiple Choice

Which of the following policies constitutes a control weakness related to the acquisition of factory equipment?

• A)Acquisitions are to be made through and approved by the department in need of the equipment.
• B)Advance executive approvals are required for equipment acquisitions.
• C)Variances between authorized equipment expenditures and actual costs are to be immediately reported to management.
• D)Depreciation policies are reviewed only once a year.

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Definitions:

SUTA Payable

A liability account showing the amounts due to the state for state unemployment taxes, payable by employers based on established rates.

Journal Entry

The method by which transactions are recorded in the company's ledger, noting debits and credits.

Debit

In accounting, a debit is an entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Form 940

A tax form filed by employers to report annual Federal Unemployment Tax Act (FUTA) taxes.