The Four Events-Processing Functions That Constitute the Segregation of Duties

question 72

Essay

The four events-processing functions that constitute the segregation of duties control plan are:
Required:
Below is a list of ten events-processing activities, five relating to the cycle of activities involved in processing a sales event and seven relating to the cycle for a purchase event.Classify each of the twelve activities into one of the four functional categories listed above by placing the letter A, B, C, or D on the answer line to the left of each number.You should use only one letter for each of the answers.

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Definitions:

Common Fixed Expenses

Fixed costs shared across different departments or product lines, such as rent or administrative salaries, not directly tied to any one aspect of business operations.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest expenses. It indicates the profitability from regular operations.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.

Segment Margin

The amount of profit or loss generated by a specific division or segment of a company, expressed as a percentage of its revenues, highlighting the segment's operational efficiency and profitability.