An Example of an Internal Control Weakness Is to Assign

question 29

Multiple Choice

An example of an internal control weakness is to assign the human resource department responsibility for:

• A)Maintaining time cards.
• B)Hiring personnel.
• C)Authorizing deductions from pay.
• D)Interviewing employees for jobs.

---

Definitions:

Unlevered Cost

Refers to the cost a company would incur without the benefit or cost of debt financing.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity and preferred equity, which is used to finance its overall operations and growth.

Economic Expansion

A phase of the business cycle where the economy grows and increases in activity, marked by rising GDP, employment, and income.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profitability that includes all expenses except interest and income tax expenses.