With a Limited Work Force and a Desire to Maintain

question 74

Multiple Choice

With a limited work force and a desire to maintain strong internal control,which combination of duties performed by a single individual presents the least risk exposure?

• A)maintaining the inventory ledger and recording the inventory journal voucher in the general ledger
• B)recording the inventory journal voucher in the general ledger and maintaining custody of inventory
• C)maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs
• D)preparing the accounts payable journal voucher and recording it in the general ledger

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Definitions:

Net Income

The total earnings or profit of a company after all expenses and taxes have been deducted from total revenue.

Sales

The exchange of a product or service for money, typically seen as a unit of measurement for business performance.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in the operations of a business and not expected to be converted to cash in the short term.