Which of the Following Would Be Considered a Part of Control

question 21

Multiple Choice

Which of the following would be considered a part of control activities in an internal control system?

• A)Having large quantities of cash on hand
• B)Separation of duties
• C)Having a leadership philosophy
• D)Locating weaknesses in an internal control system

Understand the preparation and significance of financial statements in the accounting cycle.

Differentiate between real and nominal accounts.

Explain the nature of accumulated depreciation in accounting records.

Clarify the misconceptions about the accounting cycle and common practices.

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Definitions:

Indifference Curves

A graphical representation used in economics to show different combinations of two goods that give a consumer equal satisfaction and utility.

Utility Maximizes

The behavior of consumers to obtain the greatest satisfaction from their choices, given their resources.

Substitution Effect

The change in demand for a good or service caused by a change in its price, making consumers choose alternatives.

Budget Constraints

The limitations on the spending behavior of consumers based on their income and the prices of goods and services, determining the possible combinations of goods and services they can afford.