At Radiant Company,the Sales Department Is Also Responsible for Recording

question 40

Multiple Choice

At Radiant Company,the sales department is also responsible for recording cash transactions as it does not have a separate accounting department.Which internal control procedure needs strengthening?

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

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Definitions:

Operating Expenses

Costs associated with running a business's daily operations but not directly tied to production, including rent, utilities, and salaries.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Average Operating Assets

The average value of assets used in the normal operation of a business, calculated over a specific period.

Net Operating Income

Net Operating Income is the total profit of a company after operating expenses are subtracted from operating revenues, excluding non-operating costs.