The CoBIT Framework Looks at the Issue of Internal Control

question 41

Multiple Choice

The CoBIT framework looks at the issue of internal control from three points of view. An organization's hardware and software configuration is most closely related to:

• A)Business objectives.
• B)Information technology resources.
• C)Information technology processes.
• D)Information criteria.

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Definitions:

Net Cash Flow

Net cash flow is the measure of financial performance calculated as the difference between cash inflows and cash outflows over a period of time.

Debt/Equity Ratio

A financial tool that determines the equity-debt mix used in the procurement of company assets.

Short-Term Debt

Borrowings of a company due within a year, typically used for immediate operational needs or working capital.

Long-Term Debt Ratio

A financial ratio comparing the amount of long-term debt financing relative to the total capital of a company, indicating the leverage or financial risk.