Internal Control Includes ________

question 36

Multiple Choice

Internal control includes ________.

• A)control activities and inherent risks
• B)information systems and external influences
• C)the control environment and risk assessment processes
• D)financial reporting and control activities

Understand the principles of accounting for income taxes including the differences between accounting profit and taxable profit.

Identify and calculate deferred tax assets and liabilities based on temporary differences.

Understand the impact of tax rate changes on deferred tax assets and liabilities.

Understand and apply the tax effect method of accounting for a company's income tax.

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Definitions:

Contractual Liability

The liability that individuals or entities have to one another as a result of entering into an agreement.

Common Law

A system of law based on precedent and customs rather than statutory laws.

Gap-Filling Rules

Provisions in law that allow courts or parties to fill in missing terms in a contract.

Sale Of Goods

The transfer of ownership to tangible personal property in exchange for money, other goods, or the performance of service.