A Person Who Reviews the Operating and Accounting Control Procedures

question 46

Multiple Choice

A person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate and are being followed may be referred to as a(n)

• A) bookkeeper.
• B) accountant.
• C) information processor.
• D) internal auditor.

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Definitions:

Operating Activities

Involves the primary revenue-generating activities of an organization, such as sales and services, as reflected in its cash flow.

Selling Merchandise

The process of offering goods for sale to customers, often in a retail setting, which constitutes the primary revenue-generating activity of merchandising companies.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or during the normal operation cycle of the business, whichever is longer.