List the Five Major Concerns That Companies Must Keep in Mind

question 84

Essay

List the five major concerns that companies must keep in mind when designing their internal control system.

---

Definitions:

Comparative Financial Statements

Financial statements that present financial information for multiple periods side-by-side, allowing for analysis and comparison across different time frames.

Double-Declining-Balance

A method of accelerated depreciation that doubles the rate at which an asset’s book value depreciates, allowing for a larger expense deduction in the early years of the asset’s life.

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life.

Mandatory Adoption

A requirement for companies to follow specific new accounting standards or regulations by a specified date.