Why is the separation of duties an important control activity in a good system of internal control?
When only one employee is responsible for processing a transaction from beginning to end, it is likely that an error or theft by that employee would go unnoticed. However, when two or more employees are involved in the process, an error by an employee, whether honest or not, probably would be detected by one of the other employees.
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Managers can increase overall productivity by
A. decreasing efficiency of capital. B. increasing energy. C. increasing the efficiency of materials. D. decreasing the efficiency of labor. E. decreasing outputs.
According to the job characteristics model, the core job characteristics of skill variety, task identity, and task significance combine to affect
A. knowledge of results. B. meaningfulness of work. C. autonomy of work. D. responsibility for results. E. feedback from others.
Because noncash investing and financing transactions do not affect cash, they should not be reflected in the body of the statement of cash flows
Indicate whether the statement is true or false
In terms of ethical theory, lofty compensation packages have a utilitarian function when they act as incentives for executives to produce greater overall results.
Answer the following statement true (T) or false (F)