Separation of Duties Involves Dividing Responsibility for a Transaction or a Series

question 174

True/False

Separation of duties involves dividing responsibility for a transaction or a series of related transactions between two or more individuals or departments.

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Definitions:

Withdrawal

An act of taking money out of a business by the owner for personal use.

Credit Memorandum

A document issued by a seller that reduces the amount owed by a buyer, typically due to a return or refund.

Note Receivable

A written promise for the amounts to be received by a party, often including interest, by another party.

Adjusted Cash Balance

The cash amount shown on a company's financial statements after adjustments for checks outstanding, deposits in transit, and other necessary adjustments.