A Good Internal Control System Will Contribute Towards Detecting Accidental

question 62

True/False

A good internal control system will contribute towards detecting accidental errors made by employees.

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Definitions:

Net Income

The profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Debt Ratio

A financial ratio that measures the proportion of a company's assets that are financed by debt.

Assets

Economic resources owned or controlled by an individual or entity that are expected to produce value or benefit in the future.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all expenses except interest and income tax expenses.