Which of the Following Describes the Internal Control Procedure Separation

question 21

Multiple Choice

Which of the following describes the internal control procedure separation of duties?

• A)External auditors will monitor internal controls.
• B)Cashiers must not have access to accounting records.
• C)The information system is critical.
• D)Prenumber invoices and other documents.

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Definitions:

Accounts Payable Balance

Accounts payable balance represents the total amount a company owes to its suppliers or creditors for purchases made on credit.

Costly Trade Credit

Refers to the higher cost associated with buying goods or services on credit, when compared to paying cash upfront, due to interest or fees imposed by the seller.

Effective Annual Rate

The real return on an investment, accounting for the effect of compounding over a period.

Discount

A reduction to the usual price of goods or services, or in finance, the difference between the face value of a bond and its selling price.