Which of the Following Is Part of the Control Environment

question 67

Multiple Choice

Which of the following is part of the control environment of an organization?

• A)management's philosophy and operating style.
• B)organizational structure.
• C)human resources.
• D)all of the above

Calculate working capital and interpret its significance.

Determine and analyze the current ratio as a measure of liquidity.

Understand the fiscal policy regarding the beginning and end dates of a fiscal year for a business.

Recognize the procedure for adjusting trial balances and its purpose.

---

Definitions:

Formal Operations

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly, reason logically, and manage hypothetical situations.

Sequential

Describes a process that follows a specific order or sequence, where each step or stage comes one after the other in a logical progression.

Transitivity

The cognitive ability to recognize logical relationships among elements in a serial order and to deduce the third relation from the first two.

Formal Operations

The fourth and final stage of Jean Piaget's theory of cognitive development, characterized by the ability to think abstractly, reason logically, and manage hypothetical situations.