Company Policy for Internal Control Should Include All of the Following

question 91

Multiple Choice

Company policy for internal control should include all of the following except:

• A)Employees will be rotated.
• B)Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks.
• C)The owner (or responsible employee)signs all checks after receiving authorization to pay from the departments concerned.
• D)At time of payment,all supporting invoices or documents will be stamped "paid."

---

Definitions:

Marginal Cost

The growth in the cumulative expense incurred from creating one more unit of a product or service.

Nonrival

A characteristic of a good or service where its use by one person does not reduce its availability to others.

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of economic activity.

Demand-side Market Failure

A situation where the quantity of a product demanded by consumers does not equate to the quantity supplied by producers due to externalities or imperfect information, leading to an inefficient allocation of resources.