Which of the Following Situations Is Not a Segregation of Duties

question 83

Multiple Choice

Which of the following situations is not a segregation of duties violation?

• A)
• The purchasing department initiates purchases when the purchasing supervisor determines inventory levels are too low.
• B) The warehouse clerk, who has the custodial responsibility over inventory in the warehouse, keeps the official inventory records.
• C) The sales manager has the responsibility to approve credit and the authority to write off accounts.
• D) The accounting clerk who shares the record keeping responsibility for the accounts receivable subsidiary ledger performs the monthly reconciliation of the subsidiary ledger and the control account.
• E) All of these are segregation of duty violations.

Recognize the role and benefits of international financial institutions like the World Bank and IMF in global economics.

Comprehend the role and impact of intermediaries and agents in facilitating international trade.

Acknowledge the reasons and implications behind reshoring production processes.

Understand licensing agreements and their importance in international business.

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Definitions:

Direct Method

A way of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Activities

Operating activities involve the primary day-to-day functions of a business related to producing and selling its goods or services.

Statement of Cash Flows

A financial statement that provides a detailed analysis of what happened to a company's cash during a period, categorizing cash flows into operating, investing, and financing activities.

Financing Activities

Transactions and events that affect the equity and long-term liabilities of a company, often reflected in the financing section of the cash flow statement.