The Principles of Internal Control Include All of the Following

question 230

Multiple Choice

The principles of internal control include all of the following except

• A) establishment of responsibility.
• B) combining of duties.
• C) physical mechanical and electronic controls.
• D) independent internal verification.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits, and distributed proportionally to the amount of shares owned.

Financing Activity

Transactions with lenders or investors that involve borrowing funds, repaying loans, obtaining equity capital, and paying dividends.

Subsequent Events

Events that occur after the balance sheet date but before financial statements are issued or available to be issued.

Negative Cash Flows

A financial situation where a company's outgoing cash exceeds the incoming cash during a specific period, potentially indicating financial trouble.