Which of the Following Would Indicate a Deficiency in Internal

question 82

Multiple Choice

Which of the following would indicate a deficiency in internal controls in the acquisition and payment cycle?

• A) Repairs and maintenance accounts are reviewed for unusual entries each quarter
• B) Acquisitions are made and approved by the department that will use the equipment
• C) Acquisitions of equipment greater than $1,000 are to be capitalized
• D) Acquisitions of equipment less than $1,000 are to be expensed as incurred

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Definitions:

Federal Reserve Board

The governing body of the Federal Reserve System, overseeing the U.S. central banking system and responsible for regulating the nation's monetary policy.

Recession 1937-38

A sharp economic downturn that occurred during the late 1930s in the United States, part of the larger Great Depression era, marked by high unemployment and deflation.

National Output

The total value of all goods and services produced by an economy over a specific time period.

Ronald Reagan

The 40th President of the United States (1981-1989) known for his economic policies known as "Reaganomics," the end of the Cold War, and conservative political ideology.