Which of the Following Constitutes a Control Weakness Related to Factory

question 39

Multiple Choice

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

• A) A policy requiring all purchases of factory equipment to be made by the department in need of the equipment.
• B) Checks issued in payment of purchases of equipment are not signed by the controller.
• C) Factory equipment replacements are generally made when estimated useful lives, as indicated in depreciation schedules, have expired.
• D) Proceeds from sales of fully depreciated equipment are credited to other income.

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Definitions:

Retroactive Interference

The phenomenon where newly learned information interferes with the recall of information learned previously.

Proactive Interference

The phenomenon where old memories interfere with the recall of new memories.

Encoding Specificity Principle

The principle that recall is most effective when information available at the time of recall is similar to the information available at the time of encoding.

Depth-Of-Processing Principle

A concept suggesting that information that is thought about at a deeper, more meaningful level is more likely to be remembered than information processed at a superficial level.