Carlyon Land Development Has Effective Control Processes, Allowing Its Managers

question 103

Multiple Choice

Carlyon Land Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

• A)team problems
• B)a potential merger
• C)competence
• D)a tax break
• E)irregularities

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Definitions:

Accounting Statements

Financial reports that provide a summary of a company’s financial condition, including income statement, balance sheet, and cash flow statement.

P/E Ratios

Price-to-Earnings Ratio, a measure of a company's current share price relative to its per-share earnings.

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Financial Statements

Formal records of the financial activities and position of a business, person, or entity, important for decision making.