In the Consideration of Internal Control,the Operating Effectiveness of Controls

question 60

Multiple Choice

In the consideration of internal control,the operating effectiveness of controls is tested by:

• A)Flowcharts verification.
• B)Tests of controls.
• C)Substantive procedures.
• D)Decision tables.

---

Definitions:

Tax Revenue

The income generated by the government through the imposition of taxes on goods, services, income, and transactions.

Opportunity Costs

The cost of the next best alternative foregone when a decision is made to choose one option over another.

Tax

Mandatory financial charges imposed by a government on individuals and organizations to fund public expenditures.

Market Price

The current price at which a good or service can be bought or sold, determined by the balance of supply and demand in the market.