Choose the Proper Category of Internal Control Activities That Best

question 163

Multiple Choice

Choose the proper category of internal control activities that best matches the following actions. Each action should be matched with a different numbered item within the internal controls list.
-Clearly defined authority and responsibility

• A)One employee or department should verify the work of another.
• B)Specific approval is given by management for the performance of activities.
• C)Accounting and cash collections should be properly separated.
• D)Blank checks should be stored in a locked location.
• E)Initial entry into the accounting system should be from a consistent source with complete information.

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Definitions:

Net Income

The net income of a company, which is the remaining amount of total revenue after deducting all expenses and taxes.

Inventory

The total amount of goods and materials held by a company intended for sale or production.

Net Income

It represents the amount of money that remains after subtracting all operating expenses, taxes, and costs from total revenue – a key indicator of a company's financial health.