Each of the Following Is a Feature of Internal Control

question 41

Multiple Choice

Each of the following is a feature of internal control except

• A) sound personnel policies.
• B) recording of all transactions.
• C) separation of duties.
• D) television commercials to enhance marketability.

Understand the original intent of Social Security and its role in a comprehensive retirement plan.

Grasp the concept of inflation and its impact on retirement planning.

Recognize the types of defined-contribution and defined-benefit plans and their significance for retirement savings.

Acknowledge the importance of planning and managing retirement income sources beyond Social Security.

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Definitions:

Intra-Entity Transfers

Transactions involving the transfer of goods, services, or resources between divisions or entities within the same company.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and taxes.

Accrual-Based

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Mutual Ownership

A form of ownership where an institution, such as a mutual insurance company or building society, is owned by its members or policyholders.