A Properly Designed Internal Control System

question 26

Multiple Choice

A properly designed internal control system:

• A) Lowers the company's risk of loss.
• B) Insures profitable operations.
• C) Eliminates the need for an audit.
• D) Requires the use of non-computerized systems.
• E) Is not necessary if the company uses a computerized system.

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Definitions:

Wheat Yields

The quantity of wheat produced per unit of land area.

Total Revenues

The total amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.

Price Elasticity

A measure of how the quantity demanded or supplied of a good changes in response to a change in its price, indicating the sensitivity of consumers or producers to price changes.

Elastic

Describing a situation where the demand or supply for a product responds significantly to changes in price.