The Inherent Limitations of Internal Control Include the Possibility of Collusion

question 39

True/False

The inherent limitations of internal control include the possibility of collusion by two or more individuals to circumvent a control.

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Definitions:

Depreciation Expense

The allocated portion of the cost of a tangible or physical asset that is written off as an expense over its useful life.

Revised Amounts

Adjusted figures in financial statements or budgets to reflect changes from previously reported or estimated numbers.

Straight-Line Method

A method of calculating depreciation for an asset, spreading the cost evenly over its useful life.

Depreciation Expense

It is an accounting method of allocating the cost of a tangible asset over its useful life.