Entity-Level Controls

question 37

Multiple Choice

Entity-level controls:

• A) are pervasive.
• B) affect only top management.
• C) can be less than effective if application controls are strong.
• D) All of the above.

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Definitions:

Long-Term Liabilities

Company debts that are payable beyond a year from now.

Capital Leases Payable

The liability account that records the present value of future lease payments for assets obtained through capital leases.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of the business.