Which of the Following Is Not a Limitation of the Internal

question 99

Multiple Choice

Which of the following is not a limitation of the internal control system?

• A)errors are made due to employee fatigue
• B)fraud occurs because of collusion between two employees
• C)the industry is inherently risky
• D)management instructs the bookkeeper to make fraudulent journal entries

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Definitions:

National Income Accountants

Professionals who compile and analyze data on a country's economic activity, measuring factors like GDP, national income, and investment.

Multiple Accounting

A method or system for keeping financial records that may involve tracking various financial transactions or accounts to ensure accuracy and completeness.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, stripping out the effects of inflation to reflect the real volume of goods and services produced.

National Income

The total amount of money earned within a country from the production of goods and services over a specific period.