Which of the Following Represents Good Internal Control Procedures Concerning

question 74

Multiple Choice

Which of the following represents good internal control procedures concerning cash payments?

• A) Allow anyone to access petty cash.
• B) Make sure that all cash payments are made by check (with the exception of petty cash).
• C) Assign an employee responsibility of preparing the checks, signing the checks, and preparing the bank reconciliation.
• D) Keep check supplies available to all employees.

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Definitions:

Average Product

The total output produced per unit of a factor of production, calculated as total product divided by the quantity of the factor used.

Marginal Product

The additional output produced by adding one more unit of a specific input, while holding other inputs constant.

Production Possibilities

Various combinations of the amounts of different goods that can be produced within a given economy, given technological constraints and available resources.

Isocost Line

A graph line representing all combinations of a firm's inputs that cost the same total amount.