Good Internal Controls Over Payroll Would Include All of the Following

question 43

Multiple Choice

Good internal controls over payroll would include all of the following EXCEPT that:

• A) accounting for payroll should be separate from hiring and firing of employees.
• B) disbursement of paychecks should be separate from the function of maintaining payroll records.
• C) employees should clock in and out to insure accuracy of work hours.
• D) cash receipts from customers should be separated from the accounting for accounts receivable.

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Definitions:

Sherman Act

A foundational antitrust law in the United States aimed at promoting competition by prohibiting monopolies and unfair business practices.

Antitrust Law

A body of laws and regulations aimed at promoting business competition and preventing unfair business practices such as monopolies, cartels, and mergers that limit competition.

Competition

The rivalry among businesses to attract customers, increase sales, and develop innovative products and services.

Sherman Act

A landmark federal statute in antitrust law passed by Congress in 1890, which prohibits monopolistic practices and promotes competitive markets.