Which of the Following Is TRUE of Good Internal Controls

question 128

Multiple Choice

Which of the following is TRUE of good internal controls over payroll?

• A) Accounting for payroll should be separate from hiring and firing of employees.
• B) Disbursement of paychecks should not be separate from the function of maintaining payroll records.
• C) Hiring and firing employees should not be separated from accounting and from disbursing paychecks.
• D) Cash receipts from customers should be separated from the accounting for accounts receivable.

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Definitions:

Linear Association

The relationship between two variables that can be represented accurately using a straight line in a scatterplot.

Positive Association

A relationship between two variables where an increase in one variable is associated with an increase in the other variable.

Strong Association

A term indicating a high level of correlation between two variables, suggesting that changes in one are closely linked to changes in the other.

Nonlinear

Referring to a relationship or equation that does not form a straight line when graphed, often indicating a more complex relationship between variables.