Separation of Duties Divides Responsibility for a Transaction or a Series

question 126

True/False

Separation of duties divides responsibility for a transaction or a series of transactions between two or more individuals or departments.Separation of duties reduces the risk of error and fraud.

Identify the procedures for transferring business ownership in a sole proprietorship.

Recognize the tax implications for sole proprietors and how a sole proprietorship is affected upon the owner's death.

Understand the legal framework governing the termination of franchise agreements.

Comprehend the potential liabilities for franchisors regarding the actions of their franchisees.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their final balances after all end-of-period adjusting entries have been made, used to prepare financial statements.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized and recorded in financial statements.

Income Taxes

Taxes levied by the government on the income of individuals or corporations.

Adjusting Entries

Recordings at the period's end in accounting to accurately assign earnings and costs to the time they happened.