To Ensure Proper Segregation of Duties,only the ________ Has Authority

question 53

Multiple Choice

To ensure proper segregation of duties,only the ________ has authority to issue credit memos.

• A)accounts receivable supervisor
• B)controller
• C)credit manager
• D)cashier

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Definitions:

Agency Contract

A legal agreement wherein one party, the agent, agrees to act on behalf of another party, the principal, in business transactions.

Bound

Legally or morally obligated; a condition of being tied to an agreement or course of action.

Fictitious Principal

A non-existent entity created in a contractual agreement as the party for whom the agent acts.

Disclosing Identity

The act of revealing or making known one's identity.