One of the Objectives of the Segregation of Duties Is

question 1

Multiple Choice

One of the objectives of the segregation of duties is to

• A) make sure that different people handle different parts of the same transaction.
• B) ensure that no collusion will occur.
• C) make sure that different people handle different transactions.
• D) achieve an optimal division of labor for efficient operations.

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Prepaid Insurance

An asset account that represents insurance payments made in advance for future coverage periods.

Insurance Premium

The amount of money an individual or business must pay for an insurance policy, which provides financial protection or reimbursement against losses.

Adjusting Entry

Log entries drafted at the final phase of a financial period to attribute income and expenses to the period in which they were truly incurred.