There Are Three Simple Procedures That Small Business Owners Should

question 23

Multiple Choice

There are three simple procedures that small business owners should do on a timely basis to prevent fraud when they can't afford sufficient employees to guarantee effective segregation of duties. Which of the following is NOT one among them?

• A) Pay everything by check so that there is a record.
• B) Always open the bank statement and reconcile it themselves.
• C) Allow one key employee to operate the bank account personally.
• D) Sign every check themselves and not delegate the signing to anyone else.

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Definitions:

Ratio

A mathematical relationship between two numbers indicating how many times the first number contains the second.

Interval

A range of values between two points, often used in reference to scales in measurements.

True Zero Point

In measurement scales, a true zero point indicates the absence of the quantity being measured, allowing for ratios to be meaningfully calculated.

Interval Level Variables

Interval level variables are a type of quantitative data where the intervals between values are meaningful, but the data lack a true zero point, allowing for the measurement of difference but not ratio.