Internal Control Does Not Consist of Policies and Procedures That

question 42

Multiple Choice

Internal control does not consist of policies and procedures that

• A) protect assets from misuse
• B) ensure employees and managers comply with laws and regulations
• C) guarantee the company will earn a profit
• D) ensure that business information is accurate

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Definitions:

Price Level

The collective mean of prices for all produced goods and services in the economy at present.

Investment Spending

Expenditures on capital goods by businesses and individuals to add to their capital stock, contributing to future production.

Monetary Policy

A set of actions undertaken by a country's central bank or government to control the supply of money and interest rates aiming to achieve macroeconomic goals like control of inflation, full employment, and stable economic growth.

Fiscal Policy

A government's strategy for managing its budget, including taxation and spending decisions, to influence the economy.