Important Principles of Internal Control Include

question 126

Multiple Choice

Important principles of internal control include:

• A)that payment can be made without an approved voucher.
• B)that all transactions are backed with documentation.
• C)no separation of duties.
• D)All of these answers are correct.

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Definitions:

Carrying Value

The book value of an asset or liability, calculated as the original cost minus accumulated depreciation, amortization, or impairment costs.

Current Tax Liability

The amount of taxes due to be paid to the taxing authorities within the next financial period, typically within one year.

Accounting Profit

The difference between accounting revenues earned and accounting expenses incurred.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.