Which of the Following Control Activities Would Most Likely Influence

question 92

Multiple Choice

Which of the following control activities would most likely influence the behavior of managers?

• A) Monitoring compliance with internal controls
• B) Limiting direct access to assets by physical isolation and security devices
• C) Establishing budgets or standards and identifying variances from these budgets or standards
• D) Supporting employees with the resources necessary to discharge their responsibilities

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Definitions:

Market Interest Rate

The rate at which interest is paid by borrowers for borrowing funds in the market.

Compounded Annually

A method of calculating interest in which the interest earned each year is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.

Present Value

The present value of a future amount of money or sequence of cash flows, based on a certain rate of return.

Notes Payable

Short or long-term financial obligations evidenced by promissory notes, requiring the borrower to repay the principal amount along with any accrued interest.