Which One of the Following Statements Is NOT Correct

question 47

Multiple Choice

Which one of the following statements is NOT correct?

• A) The accounting function should be separated from the custodianship of a company's assets.
• B) Certain clerical personnel in a company should be rotated among various jobs.
• C) A company's personnel should be given well-defined responsibilities.
• D) The responsibility of receiving merchandise and paying for it usually should be given to one person.

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Definitions:

Ratification

The adoption or affirmance by a person of a prior act that did not bind him.

Mutual Mistake

A misunderstanding between all parties of a contract regarding the basic facts or terms of the contract, which can make the agreement voidable.

Unilateral Mistake

A misunderstanding or error made by one party in a contract, which may not necessarily void the contract.

Misrepresentation

The assertion of a fact that is not in accord with the truth. A contract can be rescinded on the ground of misrepresentation when the assertion relates to a material fact or is made fraudulently and the other party actually and justifiably relies on the assertion.