Who Is Responsible for a Company's Internal Controls

question 101

Multiple Choice

Who is responsible for a company's internal controls?

• A)the CEO and CFO
• B)the board of directors
• C)the external auditors
• D)the PCAOB

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, including loans, accounts payable, and mortgages.

Owner's Equity

The residual interest in the assets of an entity that remains after deducting its liabilities; also known as shareholders' equity for corporations.

Revenues

Income earned by a company from its business activities; essentially the gross income figure from which costs are subtracted to determine net income.

Expenses

Expenses or the spending of resources or taking on of liabilities over time due to the delivery or production of goods, provision of services, or other actions that are central to the entity's primary operations.