Which One of the Following Is Not a Primary Component

question 17

Multiple Choice

Which one of the following is not a primary component of an internal control system?

• A)control activities
• B)delay payment of liabilities
• C)risk assessment
• D)control environment

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Definitions:

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios), often for the purpose of strategic planning.

Sales Level

The total volume or amount of sales achieved by a company within a specified period.

Payback Period

The length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Break-even Point

The juncture where the overall expenses match the total income, leading to neither a net profit nor a loss in business operations.