A State Has Different Relationships with Many Legally Separate Organizations

question 8

Multiple Choice

A state has different relationships with many legally separate organizations.Some elements of the relationships are: (1) the state can appoint a majority of some governing boards; (2) the state is able to impose its will on some;and (3) the state gets financial benefits from or is financially burdened by some.Which relationship or combination of relationships will cause an organization to be part of the state's financial reporting entity?

• A)Any one of the three relationships must exist.
• B)All three relationships must exist.
• C)A combination of relationship (3)and either relationship (1)or (2)must exist.
• D)A combination of relationship (1)and either relationship (2)or (3)must exist.

Apply the principles of internal control to cash transactions to prevent and detect errors and fraud.

Calculate and analyze the days’ sales uncollected ratio to assess the efficiency of a company's receivables management.

Understand the purpose of a voucher system in accounts payable and the steps involved in invoice approval.

Comprehend the significance of the Sarbanes-Oxley Act in enhancing the reliability of internal controls over financial reporting.

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Definitions:

Competition

The activity or condition of striving to gain or win something by defeating or establishing superiority over others.

Confrontation

A direct engagement or encounter between individuals or groups over a disagreement or conflict.

Menarche

The first occurrence of menstruation in a female, marking the beginning of reproductive capability.

Euphemisms

Mild or indirect words or expressions used in place of ones considered harsh or blunt when referring to something unpleasant or embarrassing.