Which of the Following Is Not a Factor That Relates

question 37

Multiple Choice

Which of the following is not a factor that relates to opportunities to misappropriate assets?

• A)Inadequate internal controls over assets
• B)Presence of large amounts of cash on hand
• C)Inappropriate segregation of duties or independent checks on performance
• D)Adverse relationships between management and employees

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Definitions:

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Invested Assets

Resources such as securities and properties that an individual or organization allocates money into with the expectation of generating income or profit.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Return on Investment

A financial ratio that calculates the percentage gain or loss on an investment relative to the cost of the investment, indicating the efficiency of the investment.