To Determine Whether the Accounting and Control Procedures Are Adequate

question 17

Multiple Choice

To determine whether the accounting and control procedures are adequate once the new venture is beyond the startup phase and is growing consistently, ____.

• A)an annual audit is needed
• B)financial statements are not required
• C)a business agent is not required
• D)a labor union is essential
• E)the entrepreneur should file with the SEC

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Definitions:

Market Price

Market Price is the current price at which an asset or service can be bought or sold in a competitive marketplace.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government, considered one of the safest investments due to government backing.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match its market value.

Newspaper Quote

Financial information, including stock prices, dividend data, and market analysis, traditionally published in newspapers.