Which of the Following Would Be an Example of Segregation

question 119

Multiple Choice

Which of the following would be an example of segregation of duties?

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

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Definitions:

Manufacturing Margin

The difference between the production cost and the selling price of goods, highlighting the profitability of manufacturing activities.

Absorption Costing Income Statement

This income statement format incorporates all manufacturing costs, including both fixed and variable, into the cost of a product.

Net Profit

The amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenue; also known as net income.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.