Administrative Controls Are

question 28

Multiple Choice

Administrative controls are

• A)concerned with efficient operations and adherence to managerial policies.
• B)concerned with the reliability of the financial statements.
• C)the responsibility of the company's auditors.
• D)concerned primarily with safeguarding assets.

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Definitions:

After-Tax Profit Margin

A profitability ratio calculated by dividing net income after taxes by net sales, showing what percentage of sales translates into profits after all expenses.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate revenue, calculated by dividing total revenue by average assets.

Total Assets

The sum of all current and non-current assets owned by an entity, reflecting its overall value and financial strength.

Net Profit/Pretax Profit

The income a company has left after paying all expenses but before taxes; an indicator of overall profitability.