Good Accounting Controls

question 98

Multiple Choice

Good accounting controls

• A)include all methods and procedures that facilitate management's planning and control of operations.
• B)help maximize efficiency and minimize waste,unintentional errors,and fraud.
• C)are not concerned with the accuracy of the financial records.
• D)are not concerned with safeguarding assets.
• E)All of the above statements are true concerning accounting controls.

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Definitions:

Retained Earnings

The portion of a company's profit kept in the business after dividends are paid, which can be used for reinvestment in operations, debt reduction, or other purposes.

Component Cost Of Preferred Stock

The required rate of return by investors on a company's preferred stock, essentially the cost to the company of issuing preferred stock.

Dividend Yield

The financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

After-Tax Cost Of Debt

The net cost to a company for borrowing funds, calculated by subtracting the tax savings from the cost of debt's interest payments.