Which of the Following Describes the Internal Control Procedure "Documents

question 139

Multiple Choice

Which of the following describes the internal control procedure "documents?"

• A)Mandatory vacations will improve internal control.
• B)Separate the custody of assets from accounting.
• C)The invoices and other documents must be pre-numbered.
• D)A company should purchase a fireproof vault to protect legal documents.

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Definitions:

Trade-Off

The concept of giving up one benefit or advantage in order to gain another regarded as more favorable.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, reflecting the potential benefits one misses out on when choosing one option over another.

Bowed Outward

Describes a curve on a graph, typically a production possibility frontier, indicating increasing opportunity costs when shifting resources between two goods.

Opportunity Cost

The cost of choosing one option over another, typically the best alternative forgone as a result of making a decision.