Which of the Following Is an Internal Control Procedure Used

question 95

Multiple Choice

Which of the following is an internal control procedure used to safeguard a company's assets?

• A)Timely deposits of cash receipts into a checking account.
• B)Separation of duties.
• C)Reconciliation of the bank statement.
• D)All of these.

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Definitions:

Acquisition Differential

The difference between the purchase price of an acquired company and the book value of its assets and liabilities.

Push Down Accounting

An accounting method in which the financial statements of a subsidiary are adjusted to reflect the parent company's basis of assets, liabilities, and any goodwill created in the acquisition.

Negative Acquisition Differential

occurs when the sum of the fair values of identifiable net assets exceeds the cost of acquisition, leading to an immediate gain in the acquirer's financial statement.

Negative Goodwill

A financial situation where the purchase price of a company is less than the fair market value of its assets minus liabilities.