The Following Set of Items Describes Activities Completed by a Company

question 117

Multiple Choice

The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures.
-Monthly statements,indicating the current balance due,are mailed to customers.

• A)Adheres to sound internal control procedures
• B)Violates sound internal control procedures
• C)Neither strengthens nor violates internal control

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Definitions:

Distort Incentives

When external factors or policies alter the natural motivations that influence individual or business decisions, potentially leading to inefficient outcomes.

Revenue

The income generated from normal business operations and before any expenses are deducted.

Excise Tax

A tax imposed on specific goods, services, or activities, such as gasoline, cigarettes, or gambling, usually intended to discourage their use or to raise revenue.

Luxury Boats

Expensive, high-end boats equipped with superior amenities, designed for comfort, performance, and status.