All of the Following Are Examples of Internal Control Activities

question 37

Multiple Choice

All of the following are examples of internal control activities, except

• A) bank reconciliation.
• B) rotation of key personnel.
• C) customer satisfaction surveys.
• D) insistence that employees take earned vacations.

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Definitions:

Equity Method

An accounting method used to assess the profits earned by investments in other companies by recording income equivalent to the investor's share of the investee's profits.

Cumulative Translation Adjustment

An entry in the comprehensive income section of a company's balance sheet that represents the aggregate effect of exchange rate changes on the translation of foreign subsidiaries' financial statements.

Current Rate Method

A method of foreign currency translation where all financial statement items are translated at the current exchange rate.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.