The Following Set of Items Describes Activities Completed by a Company

question 55

Multiple Choice

The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.)
-An employee from the accounting department compares the cash register tapes with the bank deposits.

• A)Adheres to sound internal controls
• B)Violates sound internal controls
• C)Neither strengthens nor violates internal control

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Definitions:

Groupitis

A derogatory term referring to the overemphasis on team or group work, sometimes at the expense of individual contributions or efficiency.

Customer Structure

An organization structure that groups together people and jobs that serve the same customers or clients.

Consumer Products Industry

The sector of the economy that manufactures and sells goods used by the general public, ranging from food and beverages to electronics and household items.

Geographical Structures

Organizational structures that group activities based on geographical regions or territories.