Approvals, Authorizations, Verifications, Reconciliations, Reviews of Operating Performance, Security Procedures

question 51

Multiple Choice

Approvals, authorizations, verifications, reconciliations, reviews of operating performance, security procedures, and segregation of duties are examples of:

• A)control activities
• B)event identification
• C)monitoring
• D)risk response

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Definitions:

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.

Interest Expense

The cost incurred by an entity for borrowed funds, which is typically charged as a percentage of the principal loan amount.

Dividends Per Common Share

The amount of a company's profit distributed to each outstanding share of common stock.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, often used to assess if a stock is over or under-valued.