Which internal control procedure addresses the idea that the likelihood of employee fraud or theft is reduced if collusion is required to accomplish it?
A. Separation of duties
B. Physical controls
C. Use of prenumbered documents
D. Fidelity bonding
Answer: A
You might also like to view...
How would accepting the order affect Grill Time's operating income?
Grill Time sells its barbecue sets for $170 each. Suppose the company incurs the following average cost per barbecue set:
Grill Time has enough idle capacity to accept a one-time-only special order from Backyard Living, Inc. for 2,000 barbecue sets at a sales price of $130 per set. Grill Time will not incur $2 of variable selling expenses for this order.
Floral Depot's income before interest expense and income taxes was $5,900 million, and interest expense was $38 million. Calculate Floral Depot's times interest earned.
What will be an ideal response?
A flexible budget:
A. parallels a static budget with respect to format and advantages of use. B. is both preferred over a static budget in the evaluation of performance and can be used to compare actual and budgeted costs at various levels of activity. C. can be used to compare actual and budgeted costs at various levels of activity. D. is preferred over a static budget in the evaluation of performance. E. gives management flexibility in terms of meeting budget goals.
Of the following, which is one of the central principles recommended in this chapter for a firm organizing itself for international business?
A) Organize value-adding activities along lines of comparative advantage. B) Establish multiple offices for international systems and a global CIO position. C) Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management. D) Develop and operate systems units at the international level first. E) Centralize production, but decentralize marketing and sales to be close to the customer.