Which One of the Following Below Is Not an Element

question 151

Multiple Choice

Which one of the following below is not an element of internal control?

• A) risk assessment
• B) monitoring
• C) information and communication
• D) cost-benefit considerations

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Definitions:

Prepaid Insurance

Payments made for insurance services before the coverage period, recorded as an asset initially and expensed over time.

Accrued Revenues

Revenues that have been earned through goods or services delivered, though payment has not yet been received.

Unearned Revenues

Money received by an individual or company for a service or product that has yet to be provided or delivered.

Accounting Period

A specific duration of time for which financial activities are reported and analyzed, usually a year or a quarter.