Developing and Enforcing Rules That Prevent the Employee Responsible for the Asset

question 66

Multiple Choice

Developing and enforcing rules that prevent the employee responsible for the asset from being able to account for the asset is called

• A)separation of duties.
• B)asset liability.
• C)adverse possession.
• D)vendor fraud.

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Definitions:

Fair Values

An estimate of the market value of an asset or liability based on current conditions and assumptions of what parties would agree upon as a fair exchange.

Acquisition Analysis

The process of evaluating the financial, operational, and strategic aspects of a target company during a merger or acquisition.

Post-acquisition Equity

The value of the equity interest in a subsidiary held by a parent company after adjusting for the cost of acquisition and other factors.

Consolidation Worksheet Entries

Journal entries used in the preparation of consolidated financial statements which adjust, eliminate, and combine account balances from separate financial statements of parent and subsidiary entities.