Which of the Following Controls Is Not a Typical Control

question 92

Multiple Choice

Which of the following controls is not a typical control that affects multiple assertions for long-lived assets?

• A)Reviewing insurance policies for adequate replacement coverage of assets.
• B)Formal budgeting process with appropriate follow-up variance analysis.
• C)Periodic comparison of physical assets to subsidiary records with the general ledger.
• D)Periodic reconciliations of subsidiary records with the general ledger.

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Definitions:

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

Price-Earnings Ratio

A valuation metric for a company, calculated by dividing the market price per share by the earnings per share.

Target Payout Ratio

The proportion of earnings a company plans to distribute to its shareholders as dividends, often expressed as a percentage.

Internal Rate

Short for Internal Rate of Return (IRR), it's a financial metric used to estimate the profitability of potential investments, calculated as the rate of return that sets the net present value of all cash flows from the investment equal to zero.