An Example of an Internal Control Is NOT

question 110

Multiple Choice

An example of an internal control is NOT:

• A) the use of bank account.
• B) the use of unnumbered checks.
• C) all checks written must have reference source documents.
• D) All of these answers are correct.

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Compounded Annually

The process by which interest is calculated on an investment or loan annually, with each year's interest added to the principal.

Interest Rate

The percentage at which interest is charged or paid on a loan or investment over a specific period.