An Interest Rate of 12% a Year Is the Same

question 33

True/False

An interest rate of 12% a year is the same as 6% for 2 months.

Understand the importance of maintaining multiple bank accounts for efficiency and better control over cash.

Grasp why systems of internal control are necessary for companies of all sizes.

Recognize the importance of employee vacations as a strength in the system of internal controls for promoting operational efficiency.

Understand the scope of internal control, emphasizing the significance of authority levels and physical controls.

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Definitions:

Productivity

The rate at which goods or services are produced, especially in relation to the input of labor, materials, and energy.

Contour Farming

An agricultural technique wherein farming practices are executed following the natural contours of the land, aimed at reducing soil erosion.

Terrace Farming

An agricultural practice of making flat areas or terraces on hilly terrain to prevent erosion and runoff, improve irrigation, and increase usable farming area.

Cover Crops

Plants grown primarily to benefit the soil and ecosystem, rather than for harvested crops, through means like erosion prevention and weed suppression.