Which of the Following Describes the Internal Control Component Monitoring

question 9

Multiple Choice

Which of the following describes the internal control component monitoring of controls?

• A)Internal auditors monitor company controls to safeguard assets, and external auditors evaluate the controls to ensure that the accounting records are accurate.
• B)Monitoring of controls is the "tone at the top" of the business.
• C)Monitoring of controls is designed to ensure that the business's goals are achieved.
• D)A company must identify its risks.

Recognize the importance of accounting for both implicit and explicit costs in business economics.

Distinguish between economic and accounting profits by understanding the inclusion of implicit costs.

Understand the concept of opportunity cost, especially in regards to capital.

Learn the critical difference between marginal revenue vs. marginal cost, and their importance in computing a firm's total profit.

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Definitions:

Genetic Inheritance

The process by which genetic information is passed on from parents to their offspring, determining certain physical and potentially psychological traits.

Genetic Inheritance

The process by which genes and traits are passed down from parents to offspring, determining various physical and sometimes behavioral characteristics.

Criterion-related Validity

The extent to which a measure is related to an outcome, assessing the practicality and effectiveness of a test by comparing it with external criteria.

Correlating Scores

The process of assessing the relationship or association between two or more variables or sets of data.