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

Understand the basic characteristics of perfect competition.

Identify how prices are set in a perfectly competitive industry.

Calculate profit per unit and understand how it is maximized.

Distinguish between industry and firm demand curves in perfect competition.

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Definitions:

Income Function

A mathematical representation that shows how an individual's or firm's income changes in relation to other factors, such as labor or capital investment.

Identical Expected Values

Situations where two or more uncertain alternatives have the same expected outcome or result.

Investment Opportunity

A financial or economic chance to invest capital with the expectation of achieving a profitable return.

Risk Averse

Condition of preferring a certain income to a risky income with the same expected value.