Controls Applicable to Paying the Payroll and Protecting Unclaimed Waginclude

question 30

Multiple Choice

Controls applicable to paying the payroll and protecting unclaimed waginclude all of the following except:

• A) payroll cheques and bank transfers should be signed or authorized by finance office personnel involved in preparing or recording the payroll.
• B) payroll cheques, where used should be distributed to employees by finance office personnel not involved in preparing or recording the payroll.
• C) any unclaimed payroll cheques should be stored in a safe or vault in the finance office.
• D) finance office personnel should check the agreement of the names and amounts on cheques or bank transfers with payroll register entries.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.

Natural Monopolies

A situation in which a single firm can supply a product or service to an entire market at a lower cost than could two or more firms, leading to a market structure where only one business exists.

Service The Market

involves addressing the needs and desires of a particular market segment by offering products, services, or solutions that cater specifically to that segment's demands.

Negative Externalities

Uncompensated adverse effects that an individual or firm's activity imposes on others, not accounted for in the market price.