All of the Following Are Examples of Internal Control Activities

question 155

Multiple Choice

All of the following are examples of internal control activities except

• A) rotation of key personnel.
• B) company picnics for all employees.
• C) bank reconciliations.
• D) insistence that employees take earned vacations.

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, considering the risk involved in holding the company's shares.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Growth Opportunities

Prospects or possibilities for financial growth and expansion within a company or market, often through investment in new projects or sectors.

P/E Ratio

Price-to-Earnings Ratio; a valuation ratio of a company's current share price compared to its per-share earnings.