Which of the Following Is Not a Medium That Can

question 5

Multiple Choice

Which of the following is not a medium that can normally be used by an auditor to record information concerning a client's internal control?

• A) Narrative memorandum.
• B) Procedures manual.
• C) Flowchart.
• D) Decision table.

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Definitions:

Par Value

Par value is the nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument, often used in the legal capital of a corporation.

Net Income

The amount of earnings left over after all expenses, including taxes and costs of goods sold, have been deducted from total revenue.

Stockholders' Equity Accounts

These accounts represent the owners' equity in a corporation, including common stock, retained earnings, and additional paid-in capital.

Net Income

The net income a corporation earns once all costs, taxes, and expenses are deducted from the total revenue.