Independent Checks Can Serve as a Preventive Control in That

question 47

True/False

Independent checks can serve as a preventive control in that they uncover problems in the data or the processing.

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Definitions:

Pro Forma Balance Sheet

A financial statement that projects the future financial position of a company, showing assets, liabilities, and equity based on hypothetical scenarios.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a particular period.

Profit Margin

A measure of profitability calculated as net income divided by revenue, expressed as a percentage.

Net Fixed Assets

The value of all fixed assets (like property, plant, and equipment) minus any accumulated depreciation.