A System of Internal Accounting Control Normally Would Include Procedures

question 22

Multiple Choice

A system of internal accounting control normally would include procedures that are designed to provide reasonable assurance that:

• A) transactions are executed in accordance with management's general or specific authorisation.
• B) employees act with integrity when performing their assigned tasks.
• C) collusive activities would be detected by segregation of employee duties.
• D) unusual transactions are accurately recorded.

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Definitions:

Real Exchange Rate

The nominal exchange rate adjusted for differences in price levels between two countries, showing how many units of a foreign product can be purchased with one unit of a domestic product.

Foreign Direct Investment

An investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

Net Capital Outflows

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners, indicating the flow of capital from a country.

Trade Deficit

A situation where a country imports more goods and services than it exports, resulting in a negative balance of trade.