Which of the Following Is an Example of a Physical

question 40

Multiple Choice

Which of the following is an example of a physical control to safeguard assets?

• A)Hiring only trustworthy cashiers.
• B)Separation of duties.
• C)Locks on the warehouse doors.
• D)Safety audits on the production line.

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Definitions:

Operating Cycle

The period between the acquisition of inventory and the collection of cash from receivables, indicating the efficiency of a company's operations.

Inventory Period

The duration of time goods remain in inventory before being sold.

Accounts Receivable Period

The accounts receivable period is the average time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Cash Cycle

This term describes the time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.