Well-Designed Internal Controls Promote: (You May Select More Than One

question 43

Multiple Choice

Well-designed internal controls promote: (You may select more than one answer. )

• A)Legal compliance and file integrity.
• B)Opportunities for defalcation.
• C)Protection against embezzlement.
• D)Audit trail support.

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Definitions:

Tax Impact

The effect that changes in taxation have on the economy, individuals, or businesses, including adjustments in spending, investment, and distribution of income.

Demand Elasticity

Measuring the impact of price swings on the volume of a good that consumers seek to purchase.

Inelastic Demand

A market condition where the demand for a product does not change significantly when its price changes.

Elastic Supply

Describes a situation where the quantity supplied of a good changes significantly when its price changes.