Indicate Whether Each of the Following Statements About Separation of Duties

question 68

True/False

Indicate whether each of the following statements about separation of duties is true or false.
-Making one employee responsible for authorization and recording of transactions does not violate the principles of good internal control

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Definitions:

Note Payable

A written promise to pay a certain amount of money, typically including interest, by a certain date; a form of credit or loan.

360-Day Year

An accounting practice that simplifies interest calculation by assuming a year has 360 days.

Product Warranty Expense

Costs incurred by a company due to repairing or replacing products under warranty.

Warranty Payments

Payments made to repair or replace products that fail to meet specified standards of quality within a certain period after sale, covered under a warranty agreement.