A Well-Designed Set of Internal Controls Helps a Company Achieve

question 43

Multiple Choice

A well-designed set of internal controls helps a company achieve four main purposes. Which of the following best pairs two controls related to a single purpose?

• A)Restrictive endorsements and bank reconciliations
• B)Restrictive endorsements and pre-numbered documents (such as checks)
• C)Bank reconciliations and background checks
• D)Pre-numbered documents and background checks

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Definitions:

First-Degree (Perfect) Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the consumer is willing to pay.

Profit-Maximizing Monopolist

A monopolist's strategy of setting a level of production and price that maximizes its profits.

Inelastic

A characteristic of goods whose demand or supply is not significantly altered when the price changes.

Quantity Sold

The total number of units of a product or service sold during a specific period.