Which of the Following Internal Controls Over Notes Payable Address

question 28

Multiple Choice

Which of the following internal controls over notes payable address risks associated with the accuracy,allocation,and completeness audit assertions?

• A)Renewals or new notes should be approved by the board of directors (as evidenced in the minutes)or by senior management.
• B)Authorized employees should perform independent recalculations of interest and reconciliation of the notes payable balance to the general ledger.
• C)Subsidiary records should be maintained for each note and there should be control over blank and paid notes.
• D)Paid notes should be cancelled and retained under the custody of an authorized official.

Understand the impact of inventory management on a firm's financial performance.

Understand challenges in comparing financial statements across international firms.

Calculate and interpret key financial ratios from given financial statements.

Grasp the concept of Economic Value Added (EVA) and its significance in assessing firm performance.

---

Definitions:

Byzantine

The art, territory, history, and culture of the Eastern Christian Empire and its capital of Constantinople (ancient Byzantium).

Egyptian

Pertaining to the culture, people, or history of Egypt, especially that of ancient Egypt.

Mechanical Timing Relays

Electromechanical devices that operate based on a timer mechanism to open or close contacts after a predetermined time delay. They are used in various applications, including control and automation systems.

PLC Timers

Refers to programmable logic controller timers, which are software-based clocks that enable time-based control in automation processes.