Which of the Following Is Not an Element of Internal

question 16

Multiple Choice

Which of the following is not an element of internal control?

• A)assessing cost/benefit relationship
• B)safeguarding assets and records
• C)authorizing transactions
• D)procedures to ensure adherence to company policy

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Definitions:

Ordinary Annuity

A sequence of identical disbursements done at consecutive period ends over a predefined duration.

Perpetuity

A type of annuity that generates an infinite series of future payments, theoretically lasting forever.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest over previous quarters, increasing the total amount at a quarterly rate.

Ordinary Perpetuity

A series of equal cash flows that occur at the end of each period forever.