The Study of Business Operations for the Purpose of Making

question 51

Multiple Choice

The study of business operations for the purpose of making recommendations about the efficient use of resources, effective achievement of business objectives, and compliance with company policies is referred to as

• A)environmental auditing.
• B)financial auditing.
• C)compliance auditing.
• D)operational auditing.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded on an asset since its purchase.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing wear and tear, decay, or obsolescence.

Contra Asset

An account on a company's balance sheet that reduces the value of a related asset, such as accumulated depreciation.

Prepaid Insurance

Payments made for insurance coverage before the coverage period begins, treated as an asset on the balance sheet until the coverage period elapses.