Which of the Following Is an Attribute of the Internal

question 94

Multiple Choice

Which of the following is an attribute of the internal control procedure-assignment of responsibilities?

• A) To validate their accounting records, a company should have an audit by an external accountant.
• B) The company should separate the custody of assets from accounting.
• C) The external auditors will monitor internal controls.
• D) Each position has clearly assigned responsibilities.

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Definitions:

Serial Bonds

Bonds of a single issue that mature in installments at regular intervals.

Bonds Outstanding Method

A method used to calculate the total amount of issued bonds by a corporation that have not yet been redeemed or matured.

Amortizing Discount

An Amortizing Discount is the process of spreading the amount of a bond's discount over its expected life, usually through regular charges to expense.