Operating Expenses Consist of

question 105

Multiple Choice

Operating Expenses consist of

• A) Interest Expense and General Expenses.
• B) Selling Expenses and Cost of Goods Sold.
• C) Interest Expense and Selling Expenses.
• D) General Expenses and Selling Expenses.
• E) Interest Expense and Cost of Goods Sold.

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Definitions:

Physical Controls

Security measures used to safeguard tangible assets from loss or theft, such as locks, alarms, and surveillance.

Independent Internal Verification

A process within companies where transactions and operations are reviewed by internal staff members who are not directly involved in the execution of these transactions, to ensure accuracy and compliance.

Human Resource Controls

Human Resource controls are mechanisms put in place to manage employees' performance and ensure compliance with organizational policies.

Segregation Of Duties

A fundamental internal control principle that divides responsibilities within an organization to reduce risks of errors or fraud.