Principles of Internal Control Include

question 55

Multiple Choice

Principles of internal control include:

• A) Record purchases using the gross method.
• B) Divide responsibilities for related transactions.
• C) Perform regular and independent reviews.
• D) Divide responsibilities for related transactions and perform regular and independent reviews.
• E) All of the above

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Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, achieving market balance.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where demand and supply are equal.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to purchase matches the amount available, leading to equilibrium in the market.

Supply Decreases

A reduction in the amount of a product or service that is available for sale, often resulting in higher prices if demand remains the same.