Requiring Employees to Take Annual Vacations Is a Part of Which

question 33

Multiple Choice

Requiring employees to take annual vacations is a part of which characteristic of internal control?

• A) Assignment of responsibilities
• B) Separation of duties
• C) Proper authorization
• D) Competent and reliable personnel

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Definitions:

Conversion Feature

A provision in some financial instruments that allows the holder to convert the instrument into another asset, often shares of the company's common stock, at a predetermined price.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Callable

A term describing a financial security (such as a bond) that the issuer has the right to redeem before its maturity date, usually at a specified call price.

Mortgage Bonds

Debt securities secured by a mortgage on the issuer's property, prioritizing bondholder claims on assets in case of default.