Internal Controls Established to Provide General Operational Efficiency and Adherence

question 40

Multiple Choice

Internal controls established to provide general operational efficiency and adherence to prescribed policies are:

• A) Administrative controls
• B) Procedural controls
• C) Accounting controls
• D) Programming controls

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Definitions:

Capital Market

Financial markets where long-term debt or equity-backed securities are bought and sold, aiding in the raising of capital for entities.

Stock Market

A collection of markets where stocks (pieces of ownership in businesses) are bought, sold, and issued.

Risk Premium

A risk premium is the extra return above the risk-free rate that investors require as compensation for the risk of holding a risky asset.

Future Payments

Payments that are scheduled to be made at a later date or period.