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Internal Control Consists of Six Components

question 26

True/False

Internal control consists of six components.


Definitions:

Bond Discount

The variance in price between the face value of a bond and the amount it fetches on the market, specifically when sold at a price less than the face value.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Semiannual Interest

Refers to the payment of interest on a loan or financial instrument every six months.

Bond Premium

The excess value of a bond above its face value in the marketplace.

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