Which of the Following Is Representative of Safeguarding Assets

question 72

Multiple Choice

Which of the following is representative of safeguarding assets?

• A)attaching electronic sensors to merchandise inventory
• B)reducing expense to increase operating profit
• C)increasing operating profit to increase net income
• D)allowing company accountants to handle cash

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Definitions:

Collection Expected

This refers to the amount of money a business anticipates receiving from its customers who have purchased goods or services on credit.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Note Receivable

A written promise for amounts to be received by a creditor from a debtor, typically generating interest income for the holder.

Interest

The cost of borrowing money or the payment received for the investment of money, typically expressed as a percentage of the principal.