What Is the Most Appropriate Control to Prevent Improper Use

question 7

Multiple Choice

What is the most appropriate control to prevent improper use of share or bond instruments?

• A)Authorization to purchase shares by a senior financial officer.
• B)Use of a registered broker to purchase and sell all shares.
• C)Proper custodial control of securities.
• D)Registration of bond instruments with the exchange authorities.

---

Definitions:

Accounting Information

Data related to the financial transactions and status of an organization, which is used for decision-making, planning, and financial reporting.

Economic Condition

Economic condition refers to the current state of the economy, encompassing aspects like growth rates, inflation, unemployment, and overall financial health.

GAAP's Goals

The objectives of Generally Accepted Accounting Principles, which include ensuring the reliability, consistency, and comparability of financial reporting.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and statement of cash flows.