Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?

• A)The COSO report failed to define internal control
• B)The COSO report emphasized that an internal control system is a tool of management
• C)SAS 78 rejected the definition of internal control provided in the COSO report
• D)COBIT concluded that a company's management is not responsible for establishing and monitoring a company's internal control system

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Definitions:

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Non-current Liability

A financial obligation that is not due for settlement within one year or the normal operating cycle of the business, often including long-term loans, bonds payable, and lease obligations.

Current Liability

Financial obligations that a company is required to pay within one year or within its normal operating cycle.

Current Maturities

The portion of a company's long-term debt that is due to be paid within the upcoming year.