The Measures Used by an Organization to Provide Reasonable Assurance

question 69

Multiple Choice

The measures used by an organization to provide reasonable assurance that the organization produces reliable financial reports,complies with applicable laws and regulations,and conducts its operations in an efficient and effective manner are collectively referred to as:

• A)Generally accepted accounting principles.
• B)Financial accounting standards.
• C)Securities and exchange regulations.
• D)The internal control structure.

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Definitions:

Marginal Productivity

The extra output that a business gains by adding one more unit of input, such as labor or capital.

Income Distribution

The way in which a country’s total GDP is spread amongst its population, affecting economic equity and quality of life.

Value Added

The increase in the value of a product or service as it passes through each stage of production or supply chain.

Marginal Productivity

The extra output or benefit gained from increasing one unit of a particular resource while keeping other resources constant.