Which of the Following Controls Would Be Most Likely to Reduce

question 56

Multiple Choice

Which of the following controls would be most likely to reduce the risk of diversion of customer receipts by a company's employees?

• A)A bank lockbox system.
• B)Approval of all disbursements by an individual independent of cash receipts.
• C)Monthly bank cutoff statements.
• D)Prenumbered remittance advices.

Apply the Du Pont identity to deconstruct a firm's return on equity.

Distinguish between types of financial ratios: asset management, profitability, long-term solvency, and market value ratios.

Evaluate company performance and financial condition from changes in ratio values.

Understand the core concepts of financial ratio analysis and its applications.