Preventive Controls Are Passive Techniques Designed to Reduce Fraud

question 30

True/False

Preventive controls are passive techniques designed to reduce fraud.

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Definitions:

Profit-sharing Plan

A retirement plan that gives employees a share in the profits of the company.

Coverdell Education Savings Account

A tax-advantaged saving account designed to pay for education expenses, from primary to higher education.

AGI

AGI (Adjusted Gross Income) is a measure of income calculated from your gross income and allows certain deductions to lower your taxable income, such as contributions to retirement accounts and student loan interest.

CESA Contribution

Contributions made to a Coverdell Education Savings Account that are designated for financing educational expenses.