At Carlson Services,the Cashier Collects Checks and Cash from Customers,and

question 196

Multiple Choice

At Carlson Services,the cashier collects checks and cash from customers,and the junior accountant records the transactions in the journal.The controller approves the journal entries and bank reconciliations.The treasurer signs checks and approves contracts.Which internal control procedure is exemplified in the above situation?

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

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Definitions:

Constructive Trust

An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property.

Indemnification

A legal obligation to compensate for loss, damage, or liability incurred by another party.

Breach

The violation or breaking of a law, duty, or contractual obligation.

Specific Performance

A legal remedy in contracts law requiring a party to perform their obligations under a contract, rather than paying damages for breach.