Which Internal Control Principle Prescribes the Use of Pre-Numbered Printed

question 50

Multiple Choice

Which internal control principle prescribes the use of pre-numbered printed checks?

• A)Technological controls.
• B)Maintain adequate records.
• C)Perform regular and independent reviews.
• D)Establish responsibilities.
• E)Divide responsibility for related transactions.

---

Definitions:

Default Risk Premium

The portion of a nominal interest rate or bond yield that represents compensation for the possibility of default.

Inflation Premium

The extra yield on an investment that investors require as compensation for the loss of purchasing power due to inflation.

Bond Payments

The regular interest payments made to bondholders, as well as the return of principal at the bond's maturity date.

Debenture

An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.