Vaughan Services Hires a New Accountant to Maintain Its Petty

question 164

Multiple Choice

Vaughan Services hires a new accountant to maintain its petty cash fund.Although the employee possesses an accounting degree,he/she had been previously convicted of embezzlement.Which internal control procedure needs to be addressed in this situation?

• A) assignment of responsibilities
• B) competent, reliable, and ethical personnel
• C) separation of duties
• D) documents

Determine the cash payments for income tax, merchandise, and operating expenses.

Calculate and understand free cash flow.

Analyze changes in balance sheet accounts to prepare the cash flows from operating activities section of a statement of cash flows.

Interpret the effect of changes in accounts receivable, accounts payable, and inventory on cash flows.

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Definitions:

Factors Influence

Elements or conditions that affect the outcome or development of a process, behavior, or phenomenon.

Blatant Racism

Open, unashamed, and direct racism or discriminatory behavior towards individuals based on their race or ethnicity.

Behavior Attitude

The way one's beliefs and feelings about something influence how they behave towards it.

Groupthink Cohesiveness

A phenomenon where a group's desire for harmony or conformity in decision-making results in an irrational or dysfunctional outcome.