All of the Following Are Characteristics of an Effective Control

question 147

Multiple Choice

All of the following are characteristics of an effective control system except

• A)reasonable criteria.
• B)timeliness.
• C)low cost.
• D)accuracy.

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Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times the first number contains the second or vice versa.

Direct Method

An accounting method used in cash flow statements that lists major cash inflows and outflows directly, without adjustments.

Cash Inflow

refers to the movement of money into a business, often from operations, financing, or investing activities, contributing to the company's cash balance.

Cash Outflow

The movement of money out of a business, project, or investment, usually in the form of expenses, purchases, or cash distributions.