The Principal Way to Detect Omitted Credits from Books of Account

question 144

Multiple Choice

The principal way to detect omitted credits from books of account is through:

• A) Forced Balance
• B) Trend analysis
• C) Expense account
• D) None of all

Identify key skills and attributes desired in management with an emphasis on communication.

Comprehend the steps of the basic communication process and the significance of feedback.

Analyze the appropriateness of different communication media based on the Lengel-Daft Contingency Model of Media Selection.

Understand the concept of noise in communication and its various forms.

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Definitions:

Current Ratio

A financial metric that evaluates a firm's capacity to settle debts due within a year by comparing its current assets to its current liabilities.

Accounting-Based Covenants

Agreements or clauses within contracts that require a borrower to meet certain financial metrics or conditions, based on accounting figures.

Net Worth

The total value of all assets a company or individual owns, minus any liabilities owed, indicating financial strength or wealth.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.