Which of the Following Questions Would Auditors Most Likely Include

question 27

Multiple Choice

Which of the following questions would auditors most likely include on an internal control questionnaire for notes payable?

• A)Are assets that collateralize notes payable critically needed for the entity's continued existence?
• B)Are two or more authorized signatures required on checks that repay notes payable?
• C)Are the proceeds from notes payable used for the purchase of noncurrent assets?
• D)Are direct borrowings on notes payable authorized by the board of directors?

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Definitions:

Classical Conditioning

Classical Conditioning is a learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited only by the second stimulus is eventually elicited by the first stimulus alone.

Habituation

A simple form of learning where there is a decrease in response to a stimulus after repeated exposure.

Operant Conditioning

A method of learning that uses rewards and punishments for behavior to increase or decrease the likelihood of a behavior being repeated.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.