In the Area of Payroll,which of the Following Procedures Represents

question 8

Multiple Choice

In the area of payroll,which of the following procedures represents proper control over the custody of assets?

• A)The supervisor receives a copy of the payroll register for a chance to approve the payroll after it is completed.
• B)Individual paycheques are prepared.
• C)Unclaimed payroll cheques are held in the office of the chief financial officer.
• D)Signatures from employees are obtained for calculation of deductions.

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Definitions:

Gross Profit

The profit from sales revenue remaining after the cost of goods sold is subtracted, but before accounting for overheads, payroll, taxes, and interest expenses.

Sales Returns

Goods returned to the seller by the buyer after the sale, leading to a reduction in sales revenue.

Discount Period

The timeframe within which a buyer can make payment less a discount for early settlement, encouraging quicker payment from customers.

Operating Expense Section

A part of the income statement that lists expenses related to the day-to-day operations of a business, excluding the cost of goods sold.