Managers Place a High Priority on Internal Control Systems Because

question 131

Multiple Choice

Managers place a high priority on internal control systems because the systems assist managers in the:

• A) Prevention of avoidable losses.
• B) Planning of operations.
• C) Monitoring of company performance.
• D) Monitoring of employee performance.
• E) Assurance that no loss will occur.

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Definitions:

Financial Information

Data concerning the financial status of an entity, including balance sheets, income statements, cash flow statements, and more, used in decision-making processes.

Financial Information

Data pertaining to the monetary transactions, assets, liabilities, and overall financial health of an entity.

Debt-to-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Financial Information

Data concerning the financial status and performance of an individual or organization, including income, expenses, and assets.