Controls That Enhance the Accuracy and Reliability of the Accounting

question 11

Multiple Choice

Controls that enhance the accuracy and reliability of the accounting records are

• A) automated controls.
• B) external controls.
• C) mechanical and electronic controls.
• D) physical controls.

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Definitions:

Annual Interest Rate

The percentage rate charged on a loan or paid on an investment over a one-year period.

Total Interest

The amount of interest payable over the life of a loan or financial instrument, calculated as the sum of all interest payments.

Principal

The amount borrowed or invested.

Accrued Interest

Interest that has been incurred but not yet paid, reflecting money owed on loans or credit extended.