Which of the Following Is Not a Component of Internal

question 48

Multiple Choice

Which of the following is not a component of internal controls?

• A)Control environment.
• B)Control activities.
• C)Inherent risk.
• D)Monitoring.

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Definitions:

Equal Marginal Principle

The principle stating that optimal allocation occurs when the marginal benefits from allocation of resources to different uses are equalized.

MRS

An abbreviation for Marginal Rate of Substitution, which is the rate at which a consumer is willing to exchange quantities of one good for another while maintaining the same level of utility.

Price Ratio

The proportionate comparison or ratio of the prices of two different goods or services.

Family and Medical Leave Act

A U.S. federal law that provides eligible employees with unpaid, job-protected leave for specified family and medical reasons.