A Firm Can Measure Its Overall Performance and Find Out

question 70

Multiple Choice

A firm can measure its overall performance and find out how successfully it's being run by analyzing its _____ ratio.

• A)management efficiency ratio
• B)industry condition ratio
• C)industrial strength ratio
• D)management effectiveness ratio

Comprehend the consequences and requirements of the Sarbanes-Oxley Act (SOX).

Identify the objectives of internal control systems.

Recognize the limitations and considerations of internal control systems.

Understand the role and impact of technology in enhancing internal control.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's transactions are mathematically correct.

Debit Column

The left-hand column in an accounting journal or ledger where debits are recorded, indicating an increase in assets or expenses or a decrease in liabilities, equity, or income.

Credit Column

The section of a financial statement or ledger where increases in liabilities, equity, and revenue or decreases in assets and expenses are recorded.

Journalized Transactions

Recording financial transactions in a journal as part of the double-entry bookkeeping system.