Which of the Following Is Not True of the Concepts

question 64

Multiple Choice

Which of the following is not true of the concepts that are embodied in the COSO framework of internal controls?

• A)Internal controls relate to the organization's objectives.
• B)The six components of internal control are logically and operationally intertwined.
• C)Internal controls apply across all activities of the organization.
• D)All of the above are true.

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Definitions:

Net Method

An accounting method that records purchases or sales of goods and services after deducting any discounts, returning the net amount.

Credit Terms

The payment conditions set by a seller for the buyer, including the period allowed for payment and any cash discount for early payment.

Inventory Returns Estimated

An approximation of the value or volume of goods that will be returned from customers back to the inventory.

Sales Refund Payable

A liability account that holds funds reserved for future refunds to customers for returned goods.