Internal Control Is Defined in Part as a Plan That

question 163

Multiple Choice

Internal control is defined in part as a plan that safeguards

• A) all balance sheet accounts.
• B) assets.
• C) liabilities.
• D) capital stock.

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Definitions:

Discount Rate

A discount rate employed to ascertain the present worth of future cash flows within discounted cash flow analysis.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment or project.

Operating Assets

Assets used in the day-to-day operations of a business, such as machinery, buildings, and equipment, that contribute to revenue generation.

Operating Costs

The expenses associated with the operation of a business, excluding costs associated with production.