Indicate Whether Each of the Following Statements Regarding Internal Controls

question 55

Essay

Indicate whether each of the following statements regarding internal controls is true or false.
_____ a) Separation of duties is an internal control feature that requires different individuals to perform the following functions: authorization, recording, and custody of assets.
_____ b) Under proper internal controls, the person who collects customer payments should also maintain the records of cash receipts.
_____ c) Under proper internal controls, those who are given authority should bear the corresponding responsibility.
_____ d) One of the basic rules of internal control is to require some employees to take regular vacations.
_____ e) A fidelity bond is a form of insurance that companies ask employees to buy to protect the company from loss due to employee dishonesty.

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Definitions:

Gallon

A unit of measurement for volume, primarily used in the United States, equal to 128 fluid ounces, or approximately 3.785 liters.

Quantity Supplied

Quantity Supplied is the amount of a good or service that producers are willing and able to offer for sale at a particular price over a given period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level at a specific time.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale, holding other factors constant.