A Good System of Internal Control Will Include All of the Following

question 51

Multiple Choice

A good system of internal control will include all of the following except:

• A)Preparing a pro-forma financial statement on a monthly basis.
• B)Separating the handling of cash from the maintenance of accounting records.
• C)Making all major payments by check.
• D)Reconciling bank statements with accounting records.

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Definitions:

Condition Subsequent

A specific condition in a contract that, when it occurs, ends the contract's obligations.

Exemption Clause

A contract term that limits the liability of one party under certain circumstances, often found in terms and conditions.

Fundamental Breach

A violation of a contract that is so severe it permits the aggrieved party to terminate the agreement and possibly seek damages.

Minor Aspect

A less significant or minor detail or element of a larger issue or subject.