Which of the Following Sets of Duties Would Ordinarily Be

question 25

Multiple Choice

Which of the following sets of duties would ordinarily be considered basically incompatible in terms of good internal control?

• A)Preparation of monthly statements to customers and maintenance of the accounts payable subsidiary ledger.
• B)Posting to the general ledger and approval of additions and terminations relating to the payroll.
• C)Custody of unmailed signed checks and maintenance of expense subsidiary ledger.
• D)Collection of receipts on account and maintaining accounts receivable records.

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Definitions:

Optimal Labor Employment

The most efficient and effective level of staffing for a business or organization to maximize productivity and minimize costs.

Minimum Wage

The lowest legal salary that employers can pay their employees, often set by government laws.

Marginal Product

The additional output that is produced by using one more unit of a specific input, keeping other inputs constant.

Level of Employment

The total number of people currently employed in the economy, either full-time or part-time.