Which of the Following Is NOT a Characteristic of Effective

question 46

Multiple Choice

Which of the following is NOT a characteristic of effective control systems?

• A) Controls need to focus on appropriate activities.
• B) Controls should be timely.
• C) Controls should cost more than the benefits they create.
• D) Controls should be accepted by those they affect.

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Definitions:

Compounded Annually

Interest on an investment or loan calculated once a year on both the initial principal and the accumulated interest from previous periods.

RRSP

Registered Retirement Savings Plan, a Canadian retirement savings vehicle that offers tax benefits.

Ordinary Annuity

Definition: An annuity for which the payment or receipt of funds happens at the end of each period.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, resulting in 'interest on interest.'