Which of the following functions and related control activities are associated with the financing process?

Question

Quizplus · Accepted Answer

All of the listed functions and related control activities are associated with the financing process.

A) Authorizing bonds and capital stock involves the initial decision-making and approval process for raising capital through debt (bonds) or equity (capital stock) issuance. This is a key control activity to ensure that financing decisions align with the organization's overall strategy and goals.

B) Paying bond interest and cash dividends are ongoing control activities associated with servicing debt and rewarding investors. These activities help ensure that interest and dividends are paid on time and accurately, and are accounted for appropriately in financial statements.

C) Redeeming and reacquiring bonds and capital stock are further control activities that may be undertaken depending on an organization's financial needs and market conditions. Redemption of bonds involves paying off the principal amount plus any accrued interest, while reacquisition of capital stock involves buying back shares from investors. These activities can help manage debt levels and optimize capital structure.

Which of the Following Functions and Related Control Activities Are