A Traditional Definition of Internal Control Specifically Includes All of the Following

question 10

Multiple Choice

A traditional definition of internal control specifically includes all of the following features except

• A)adherence to prescribed managerial policies.
• B)promotion of operational efficiency.
• C)reliability of accounting data.
• D)insistence that employees not take earned vacations.

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Definitions:

Direct Write-off

A method of accounting for bad debts where specific uncollectible accounts receivable are written off against income at the time they become uncollectible.

Bad Debt Expense

The operating expense incurred because of the failure to collect receivables.

Uncollectible

Refers to amounts due to a company that it considers unlikely to be collected from debtors.

Trade Receivables

Sums due to a business from its clients that stem from selling products or services on account.