A System of Internal Control Cannot Be Considered Good Until

question 71

True/False

A system of internal control cannot be considered good until the possibility of human error has been completely eliminated.

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Definitions:

Leverage Ratio

A financial ratio that measures the degree of an entity’s reliance on borrowed funds compared to its equity.

Financial Statements

Documents that provide an overview of a business or individual's financial condition, including balance sheets, income statements, and cash flow statements.

Common Shares

Equity investments that represent ownership interests in a corporation, with rights to share in the company's profits through dividends and/or capital appreciation.

Quick Ratio

A measure of a company's short-term liquidity, calculating its ability to meet short-term obligations with its most liquid assets.