This Type of Control Is Designed to Avoid Errors, Fraud

question 34

Multiple Choice

This type of control is designed to avoid errors, fraud, or events not authorized by management.

• A)Prevention
• B)Judicial
• C)Detection
• D)Correction

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Definitions:

Ordinary Income

Income earned from providing services or the sale of goods, typically subject to standard tax rates, as opposed to income classified as capital gains.

Equipment Distribution

The process of supplying equipment to various departments or locations within an organization or among individuals.

Cash Distributions

Payments made in cash by a corporation to its shareholders, typically from earnings or profits.

Tax-exempt Income

Income that is not subject to federal income tax, such as certain interest income from municipal bonds.