A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud
Segregation of duties. Do not let one person have custody of payments and the ability to make adjustments to the records. All adjustments to accounts receivable records must be authorized.
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A home improvement chain plans for various contingencies such as higher interest rates reducing home sales and the effect of electricity disruption due to major storms. This analysis is _____
a. scenario analysis b. gap analysis c. benchmarking d. opportunity cost analysis
Which of the following is generally NOT a defense to a claim against a manufacturer under 402A?
a. Contributory negligence on the part of the plaintiff. b. Express voluntary assumption of the risk. c. Misuse or abuse of the product. d. Subsequent alteration of the product by the plaintiff.
Mass-merchandisers
A. usually operate with low margins on individual items. B. operate on the "buy low, sell high" philosophy. C. try to reduce costs by reducing inventory turnover. D. face a bright future and increasing profits-because of decreasing competition. E. None of these answers is correct.
Although under GATT's most-favored nation provision all signatories must treat each other as favorably as they treat any other country, nations may give preferential treatment to developing nations and may enter into free trade areas
Indicate whether the statement is true or false