Within the Context of the Financing Process, Separation of Duties

question 59

Multiple Choice

Within the context of the financing process, separation of duties means:

• A)The accounting department cannot issue dividend checks without the approval of the board of directors.
• B)An accountant who prepares dividend checks cannot also prepare checks for repayment of long-term debt.
• C)Both the accounting department cannot issue dividend checks without the approval of the board of directors and an accountant who prepares dividend checks cannot also prepare checks for repayment of long-term debt are true.
• D)Neither the accounting department cannot issue dividend checks without the approval of the board of directors nor an accountant who prepares dividend checks cannot also prepare checks for repayment of long-term debt is true.

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Definitions:

Fixed-Quantity Models

Inventory control models that trigger orders of a predetermined quantity whenever the inventory level reaches a specific reorder point.

Stockout

A situation in inventory management when a requested product is not available in stock.

Review Period

A predefined interval of time during which performance, progress, or quality is evaluated or assessed.

Standard Deviation

A statistical measurement that denotes the variability or dispersion of a set of data points.