​The Following Is NOT an Example of a Potential Monitoring

question 37

Multiple Choice

​The following is NOT an example of a potential monitoring solution to moral hazard

• A)​a pre-hire typing test for clerical employees
• B)closed circuit TVs throughout a warehouse
• C)GPS tracking devices in repair trucks
• D)​listening in on call center conversations

---

Definitions:

Loan Covenant

A condition in a loan agreement that the borrower must comply with, which can include financial requirements or operational actions.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presenting the results of operation and the financial condition including balance sheet, income statement, and cash flow statement.

Regulatory Accounting Principles

Specific accounting principles that are prescribed by a regulatory authority, designed for industries under regulation.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards that companies follow when preparing financial statements in the United States.