Proper Segregation of Duties Requires That the Responsibility Approving a Payment

question 11

True/False

Proper segregation of duties requires that the responsibility approving a payment be separated from posting to the cash disbursements journal.

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Definitions:

Used Equipment

Pre-owned machinery or technology that may be purchased for business operations at a lower cost compared to new items.

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer's total income.

Interest Income

Earnings received from deposit accounts or investments through the payment of interest.

Eligible Dividends

Dividends that are designated by a corporation to be eligible for a lower tax rate for the receiver, depending on jurisdiction.