Which Type of Control Is Associated with Making Sure an Organization's

question 56

Multiple Choice

Which type of control is associated with making sure an organization's control environment is stable?

• A)general
• B)application
• C)detective
• D)preventive

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Definitions:

Allowance Method

An accounting technique that estimates and accounts for bad debts as an expense before they are actually confirmed as uncollectible.

Maturity Date

Maturity Date is the specified date on which the principal amount of a loan, bond, or other financial instrument is due to be repaid.

Note Receivable

A note receivable is an amount of money owed to a business or individual that is evidenced by a written promissory note specifying the terms of payment.

Interest Due

Interest due refers to the amount of interest payment that is owed but not yet paid by a borrower to a lender by the due date.