Internal Control Does Not Consist of Policies and Procedures That

question 42

Multiple Choice

Internal control does not consist of policies and procedures that

• A) protect assets from misuse
• B) ensure employees and managers comply with laws and regulations
• C) guarantee the company will earn a profit
• D) ensure that business information is accurate

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Definitions:

Nondefense Capital Goods

Products used by businesses to produce goods or services that are not intended for military use.

Supply Shock

An unexpected event that suddenly changes the supply of a product or commodity, resulting in an unexpected change in price.

Imported Oil

Oil that is produced outside of one's home country and brought in through international trade agreements for consumption or use.

Government Spending

Expenditures by government agencies on goods and services that influence the economy.