For Effective Internal Control,which of the Following Functions Should not

question 74

Multiple Choice

For effective internal control,which of the following functions should not be assigned to the company's accounting department?

• A)Reconciling accounting records with existing assets.
• B)Recording financial transactions.
• C)Signing payroll checks.
• D)Preparing financial reports.

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Definitions:

Elasticity

A measure used in economics to show how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage.

Kinked-Demand Curve

A model that suggests prices tend to be rigid or stable because businesses will follow a strategy of matching price increases but not price decreases by competitors.

Price Rigidity

The phenomenon where prices of goods and services do not adjust immediately to changes in supply and demand conditions.

Product Differentiation

The method of differentiating a product or service to appeal more to a specific target audience.