Indicate Whether Each of the Following Statements Regarding Internal Controls

question 40

Short Answer

Indicate whether each of the following statements regarding internal controls is true or false.
_____ a)Internal controls are used to provide reasonable assurance that the objectives of an enterprise will be accomplished.
_____ b)Internal controls can be divided into accounting controls and administrative controls.
_____ c)The mechanics of internal control systems do not vary from company to company.
_____ d)Accounting controls are concerned with the evaluation of performance and the assessment of the degree of compliance with company policies and public laws.
_____ e)Administrative controls are composed of policies and procedures that are designed to safeguard the assets and to assure that accounting records contain reliable information.

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Definitions:

Compounded Semi-Annually

Calculation of interest where the amount is recalculated and added to the principal every six months.

First Three Years

The initial period of time covering three consecutive years, often cited in contexts of growth, development, or performance assessment.

Compounded Monthly

The calculation of interest paid or earned, where the interest is added to the principal balance monthly, allowing the interest to be earned on interest.

Total Interest

The sum of all interest payments made over the life of a loan or credit.