Which of the Following Will Limit a Firm's Potential Loss

question 46

Multiple Choice

Which of the following will limit a firm's potential loss exposure from paycheck forgery?

• A)Segregation of check distribution from payroll duties.
• B)Prompt redeposit of unclaimed paychecks.
• C)A separate payroll bank account.
• D)Direct deposit of checks.

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Definitions:

Allocation

The process of distributing resources or assigning tasks among various projects, units, or individuals.

Recognized Loss

A realized loss on investments or assets reflected in a company's financial statements.

Consolidation Process

The consolidation process involves combining the financial statements of separate companies, typically within the same corporate group, to form a single set of financial statements as if they were one entity.

Subsidiary

A company that is completely or majority-owned by another company, referred to as the parent company, which controls its operations and policies.