A Control System Cannot Be Effective Without Consideration of How

question 3

True/False

A control system cannot be effective without consideration of how people will react to it.

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Definitions:

Contra-Asset

An account that is used to reduce the balance of a related asset account, with the most common example being accumulated depreciation.

Contra-Revenue

An account deducted from gross revenue or sales, which includes returns, allowances, and discounts, ultimately affecting the net revenue reported.

Purchases Discount

A reduction in the price of goods a company buys, typically for paying early or within a specified time period.

Accounts Payable

Liabilities owed by a business to its creditors for goods and services purchased on credit, which are due within a short period.