An Internal Control System Consists of the Policies and Procedures

question 65

True/False

An internal control system consists of the policies and procedures companies use to protect assets, ensure reliable accounting, promote efficient operations, and uphold company policies.

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Definitions:

Affirmed

In legal terms, it means a decision or judgment has been confirmed or upheld by a higher court.

Declared Bankrupt

The legal status of an individual or entity that cannot repay the debts they owe to creditors, formally recognized by a court.

Capacity To Contract

The legal ability of a person to enter into a binding contract, typically requiring that the individual is of a certain age and sound mind.

Necessaries

Goods or services that are essential for someone’s maintenance and welfare according to their status in life and their requirements at the time of contract.