Which internal control principle prescribes the use of pre-numbered printed checks?
A. Perform regular and independent reviews.
B. Establish responsibilities.
C. Maintain adequate records.
D. Technological controls.
E. Divide responsibility for related transactions.
Answer: C
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What is a disadvantage of text messaging?
A) Using text messaging on the job lowers productivity. B) Employees using free consumer-grade instant messaging systems might reveal privileged information and company records. C) Texting is a relatively high-cost substitute for voice calls. D) Text messaging is an indiscreet way of communicating.
Avalanche operates as a strategic business unit (SBU) under Snowfall Inc., a home-furnishings manufacturer. From this information, it may be reasonable to infer that
A. Avalanche is dependent on the other SBUs in Snowfall Inc. B. Avalanche does not have its own profit and loss responsibility. C. Avalanche is led by its own CEO (or equivalent general manager). D. Avalanche has a matrix organizational structure.
Blythe, an accountant for Credits & Debits, acquires a negotiable instrument from Eton by promising to pay its face value in thirty days. Blythe acquires the status of an HDC when she
A. acquires possession of the negotiable instrument. B. agrees with Eton to buy the negotiable instrument. C. pays the face value due on the instrument. D. transfers the instrument to another party.
Scenario 13.2 Use the following to answer the questions. Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product
lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party. Refer to Scenario 13.2. Star Supplies, Inc. is most likely using which of the following to market its vacuum, floor polisher, and janitorial supplies to its small business customers? A. Wholesalers B. Retailers C. Merchants D. Industrial distributors E. Manufacturers' agents