Internal Controls Are Important Because They

question 17

Multiple Choice

Internal controls are important because they:

• A) deter fraud and prevent misleading financial statements.
• B) eliminate fraud.
• C) ensure that the company maintains a compensating balance.
• D) guarantee accurate financial statements.

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Definitions:

Spermicides

Chemicals that are used in various contraceptive methods to kill or immobilize sperm, reducing the chance of pregnancy.

Oral Contraceptives

Medications taken by mouth to prevent pregnancy, containing hormones that inhibit ovulation, alter the cervical mucus, or change the uterine lining.

Ovum Transport

The process by which an ovum (egg) is moved from the ovary through the fallopian tube toward the uterus, a necessary step for potential fertilization.

Cervical Mucus

A fluid produced by the cervix that varies in consistency throughout the menstrual cycle, playing an important role in fertility and protecting the uterus from infections.