In a Large Company, Who Usually Monitors the Internal Control

question 65

Multiple Choice

In a large company, who usually monitors the internal control?

• A) Internal auditors.
• B) PCAOB.
• C) CFO.
• D) External auditors.

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Definitions:

Bad Debt Expense

The cost associated with accounts receivable that a company determines will not be collected, recognizing it as an expense.

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility for goods until they are delivered to the buyer’s location, at which point the buyer takes ownership.

Sale Recorded

The process of documenting a sale transaction in the financial books of a company, recognizing revenue.

Deposits in Transit

Funds that have been received and recorded by a company but not yet by its bank.