Which of the Following Is a Weakness in Internal Control

question 3

Multiple Choice

Which of the following is a weakness in internal control that allows a reasonable possibility that a significant (but less than material) misstatement may occur and not be detected?

• A)Control deficiency.
• B)Material weakness.
• C)Reportable material item.
• D)Significant deficiency.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust all inputs as needed.

Perfectly Elastic

A demand situation where the quantity demanded changes infinitely in response to any change in price.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where demand and supply are equal.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.