Allowing the Supervisor to Occasionally Ignore a Variance,if It Is

question 48

Multiple Choice

Allowing the supervisor to occasionally ignore a variance,if it is in the best interests of the company is an example of a control that is:

• A) flexible.
• B) economical.
• C) even.
• D) concurrent.

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Definitions:

Cash

Liquid assets held in the form of currency or bank accounts that can be readily used for transactions.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to produce goods or services.

Partners' Investments

The capital contributed by partners into a partnership for its operation and growth.

Owners' Equity

Owners' equity, similar to stockholders' equity, is the proportion of a company's total value that belongs to its owners or shareholders, reflecting the net assets after liabilities have been deducted.