The Key Factors of a Good Internal Control System Includes

question 4

Multiple Choice

The key factors of a good internal control system includes

• A) Accounting system including information that is valid, complete, and timely
• B) Physical control of assets
• C) Segregation of duties
• D) All of the above

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Income Distribution

The way in which total income is shared among the members of an economy.

Insolvent

A financial state where an individual or organization cannot meet its debt obligations as they come due.

Liabilities

Financial obligations or debts that a company owes to outside parties, which are recorded on the right-hand side of the balance sheet.