Which of Following Functions Should Be Segregated

question 108

Multiple Choice

Which of following functions should be segregated?

• A)opening the mail and making the journal entry to record cash receipts
• B)authorizing credit and determining reorder quantities
• C)maintaining the subsidiary ledgers and handling customer queries
• D)providing information on inventory levels and reconciling the bank statement

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Definitions:

Multicollinearity

A situation in statistical models where several predictor variables are highly correlated, which can undermine the statistical significance of an independent variable.

Predictor Variables

Independent variables in statistical models that are used to predict the value of a dependent variable.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.

Correlation Matrix

A table showing correlation coefficients between variables, indicating the strength and direction of relationships.