Internal Control Is a Process Designed to Provide Absolute Assurance

question 34

Multiple Choice

Internal control is a process designed to provide absolute assurance regarding achieving objectives in which of the following?

• A) efficiency and effectiveness of operations
• B) reliability of reporting
• C) compliance with applicable laws and regulations
• D) none of the above

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Definitions:

Accounting Period

A specific time period for which financial statements are prepared, such as a month, quarter, or year.

First-In, First-Out

Another explanation: An accounting principle for valuing inventory where older stock is sold or used first before newer inventory.

In Process

Relating to materials or products that are in the course of being manufactured but are not yet completed.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units.