A Strong Internal Control Structure

question 106

Multiple Choice

A strong internal control structure:

• A) Contributes to the accuracy and reliability of the accounting records.
• B) Will prevent a business from operating at a loss.
• C) Assures that a business will remain solvent.
• D) Will prevent fraud, theft, and embezzlement.

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Definitions:

Sales Mix

The combination of products or services that a company sells, typically influencing the company's profits and strategy.

High-margin Items

Products or services that generate a significantly higher percentage of profit relative to their sales price.

Incremental Analysis

An analytical approach that focuses only on those costs and revenues that change as a result of a decision.

Break-even Point

The point at which total revenues equal total costs, resulting in no net loss or gain for the business.