Which of the Following Would Not Be an Example of Segregation

question 76

Multiple Choice

Which of the following would not be an example of segregation of duties?

• A)Sales employees have restricted ability to delete or modify accounts receivables.
• B)Employees make sales to customers and record the credit sales in the accounts receivables.
• C)Customer refunds are recorded on a written credit note.
• D)Employees depositing funds to the bank do not prepare the bank reconciliation.

Recognize the presentation and disclosure requirements for current liabilities under IFRS and GAAP.

Understand provisions and warranties, and how they impact financial statements.

Understand how to compute various financial metrics and their significance, such as working capital and current ratio.

Ability to execute payroll computations, including gross earnings, tax withholdings, and net pay.

---

Definitions:

Net Income

The company's net earnings following the subtraction of all costs and taxes from its income.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets, calculated as current assets divided by current liabilities.

Short-Term Notes Payable

Short-term debts or obligations that are due to be paid within one year, often in the form of promissory notes.

Accruals

Accounting adjustments for revenues that have been earned but not yet received, or expenses that have been incurred but not yet paid.