Internal Control Procedures Fit into Two Categories

question 35

Multiple Choice

Internal control procedures fit into two categories:
1) preventing accidental errors and intentional misrepresentations from occurring, and 2) _____.

• A) reprimanding employees responsible for errors
• B) covering up errors after the occur
• C) punishing those responsible for errors
• D) identifying errors and irregularities after the occur
• E) overlooking errors after they occur

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Definitions:

Full Employment

An economic situation where all available labor resources are being used efficiently and there is no cyclical unemployment, implying a low, stable rate of unemployment.

Aggregate Supply

The aggregate output of goods and services generated inside an economy, measured at a specific price level over a designated time frame.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, serving as a key indicator of economic health.

Agency

In economics and finance, refers to a relationship where one party, the agent, makes decisions or performs a service on behalf of another, the principal.