Proper Segregation of Duties Requires That the Responsibility for Approving

question 63

True/False

Proper segregation of duties requires that the responsibility for approving a payment be separated from posting to the cash disbursements journal.

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest in the company.

Owner's Drawings

The funds taken from the business by the owner for personal use, not considered as salary or wages.

Owner Drawings

Refers to the money or assets taken out of a business by the owner(s) for personal use.

Net Income

The profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenue.