Principles of Internal Control Include

question 15

Multiple Choice

Principles of internal control include:

• A) Record purchases using the gross method.
• B) Divide responsibilities for related transactions.
• C) Perform regular and independent reviews.
• D) Divide responsibilities for related transactions and perform regular and independent reviews.
• E) All of these answers are correct.

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Definitions:

Cumulative

Refers to the aggregate total of items or figures collected over a period of time, often used to describe the total amount of dividends or interests.

Dividends in Arrears

Dividends on cumulative preferred stock that have not been paid in the period they were due.