In Terms of an Effective Internal Control System, the Practice

question 15

Multiple Choice

In terms of an effective internal control system, the practice of issuing identification cards to employees assists:

• A) clear establishment of responsibility lines.
• B) maintenance of effective records.
• C) separation of duties.
• D) physical protection of sensitive assets.

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Definitions:

Industry Life Cycle

A concept that describes the stages of growth and development that an industry goes through from inception, through growth, maturity, and eventually decline.

Stock Prices

The current market price at which shares of a company are bought or sold.

Supply Shock

An unexpected event that suddenly changes the supply of a product or commodity, leading to a rapid change in its price.

Corporate Earnings

The profit a company makes after deducting the costs of doing business, such as expenses, taxes, and more, usually reported quarterly.