Match the Following Elements of Internal Control

question 167

Multiple Choice

Match the following elements of internal control:
-control procedures

• A)provides reasonable assurance that business goals will be achieved
• B)used by management for guiding operations and ensuring compliance with requirements
• C)overall attitude of management and employees
• D)used to locate weaknesses and improve controls
• E)identify, analyze and assess likeliness of vulnerabilities

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Definitions:

Asset Utilization

Measures how efficiently a company uses its assets to generate revenue.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.

Total Assets

The sum of all current and long-term assets owned by a company, as represented on its balance sheet, indicating the resources it has at its disposal.

Inventory Turnover Ratio

Cost of goods sold as a multiple of average inventory.