Which of the Following Is Not One of the Controls

question 25

Multiple Choice

Which of the following is not one of the controls when customer payments are commingled with other mail?

• A)preparing a remittance list as mail is opened
• B)restrictively endorsing checks when received
• C)requiring two mail room clerks to open mail together
• D)requiring the controller to be personally present when mail is received and opened

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Definitions:

Net Income

Net earnings of a company, calculated by subtracting all costs, including taxes and expenses, from its overall revenue.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces the price per share.

Stockholders' Equity

The part of the company's assets that belongs to the shareholders after debts and liabilities have been settled, equivalent to the residual assets minus liabilities.