With a Limited Work Force and a Desire to Maintain

question 5

Multiple Choice

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

• A)Updating the inventory subsidiary ledgers and recording purchases in the purchases journal.
• B)Approving a sales return on a customer's account and depositing customers' checks in the bank.
• C)Updating the general ledger and working in the inventory warehouse.
• D)Entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal.

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Definitions:

Debit

A financial record that leads to a rise in assets or a reduction in liabilities on a corporation's balance sheet.

Balance of Payments

The balance of payments is a comprehensive record of a country's economic transactions with the rest of the world, including trade, investments, and financial transfers, over a specific time period.

Statistical Discrepancy

The difference between two statistical outcomes that should theoretically match but do not due to errors or estimation methods.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.