For Public Companies in the U

question 5

Multiple Choice

For public companies in the U.S. ,which statement is not correct?

• A)Management is responsible for the development of internal controls and the financial reporting process.
• B)Internal controls over the financial reporting process are only effective as of year-end.
• C)These controls are designed to assure that the internal control process of a company is effective.
• D)Effective financial reporting provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes.

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Definitions:

Idle Capacity

Unused or unutilized production capacity within a business, often leading to inefficiency and increased costs.

Constrained Resource

A limited resource that restricts a company's ability to meet demand, such as limited machine time or labor hours.

Automated Factory

An automated factory utilizes advanced machinery and computer systems to perform tasks with minimal human intervention, increasing efficiency and production.

Porcelain Dip Bowl

A specific type of serving bowl made from porcelain, typically used for dipping sauces or small appetizers.