Identify the Corrective Control Below

question 11

Multiple Choice

Identify the corrective control below.

• A)Reconciling the bank statement to the cash control account.
• B)Approving customer credit prior to approving a sales order.
• C)Maintaining frequent backup records to prevent loss of data.
• D)Counting inventory on hand and comparing counts to the perpetual inventory records.

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Definitions:

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to present value.

Cost of Equity

The cost of equity is the return that a company is expected to pay to its shareholders for their investment in the company's equity.

Flotation Costs

Expenses incurred by a company when it issues new securities, including fees to underwriters, legal fees, and registration fees.

WACC

The Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital, where each category of capital is proportionately weighted.