The Principles of Internal Control Include

question 28

Multiple Choice

The principles of internal control include:

• A)Separate recordkeeping from custody of assets.
• B)Maintain minimal records.
• C)Use only computerized systems.
• D)Bond all employees.
• E)Require automated sales systems.

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Definitions:

Annual Coupon

The yearly interest payment paid to bondholders, typically based on a percentage of the bond's face value.

Expected EBIT

The projected Earnings Before Interest and Taxes, an estimate of a company's profit excluding interest and income tax expenses.

Book Value

The net value of a company's assets minus its liabilities and preferred stock, representing the value of the company according to its financial statements.

Expected Earnings

Predictions or estimates of a company's profit during a specific period in the future, often used by investors to make informed decisions.