Which of the Following Describes the Internal Control Component Information

question 16

Multiple Choice

Which of the following describes the internal control component information system?

• A)Control procedures are designed to ensure that the business's goals are achieved.
• B)Only authorised users have access to various parts of the information system.
• C)The information system is the 'tone at the top' of the business.
• D)Internal auditors monitor company controls to safeguard assets and external auditors monitor the controls to ensure that the accounting records are accurate.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a relevant resource or factor of production.

Rental Cost

The expense incurred from hiring or leasing a property or equipment.

Retains Earnings

Profits that a company keeps after dividends have been paid out to shareholders, often re-invested into the business for growth, paying off debt, or other purposes.

Investment Purposes

The intention behind allocating resources, often funds, into financial assets, real estate, or business ventures aiming to generate future returns.