Each of the Following Types of Controls Is Considered to Be

question 47

Multiple Choice

Each of the following types of controls is considered to be an entity-level control, except those:

• A)relating to the control environment.
• B)pertaining to the company's risk assessment process.
• C)regarding the company's annual stockholder meeting.
• D)addressing policies over significant risk management practices.

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Definitions:

Single-Step Income Statement

A simplified income statement that calculates net income or loss by subtracting total expenses from total revenues in one step.

Multiple-Step

An income statement format that segregates operating revenues and expenses from non-operating revenues, expenses, gains, and losses.

Revenues

Revenue that comes from regular business activities, factoring in discounts and allowances for products that are returned.

Expenses

The outflows or using up of assets or incurring of liabilities during a period from delivering goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.