Which of the Following Is an Example of a Detect

question 27

Multiple Choice

Which of the following is an example of a detect control?

• A)Amounts are not able to be paid to employees without first matching a valid tax file number to the employee master file.
• B)Account coding on purchase orders being checked by the computer to a table of valid account numbers.
• C)Quarterly reviews of credit balances in accounts receivable to determine their causes.
• D)None of the above.

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Definitions:

Dividend Cuts

A reduction in the dividend payments announced by a company, often due to financial difficulties or a need to retain more earnings for investments.

Target D/E Ratio

The desired debt-to-equity ratio that a company aims to achieve to optimize its capital structure.

Residual Dividend Policy

Residual Dividend Policy is a strategy where a company pays dividends out of the residual or leftover equity only after all project capital needs are met.

Dividend Irrelevance Theory

Holds that dividend policy has no effect on either the price of a firm’s stock or its cost of capital.