Which Control Does Not Help to Ensure That Accurate Records

question 100

Multiple Choice

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

• A)reconcile accounts receivable control to accounts receivable subsidiary
• B)authorize credit
• C)segregate custody of inventory from record keeping
• D)segregate record keeping duties of general ledger from accounts receivable

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Definitions:

Put Option

A financial contract allowing the holder to sell a specific amount of an underlying asset at a predetermined price within a specified time frame.

Hedge Ratio

A ratio used to calculate the amount of derivatives needed to hedge a position or portfolio, often used to minimize risk exposure.

Delta

A measure in financial markets that compares the change in the price of a derivative to the change in the price of its underlying asset.

Gamma

A measure of the rate of change in an option's delta for a one-unit change in the price of the underlying asset.