Which of the Following Forms of Internal Control Eliminates the Need

question 29

Multiple Choice

Which of the following forms of internal control eliminates the need for human judgment in the accounting information system: (i) audits, (ii) trial balances, (iii) information technology.

• A) i and ii only.
• B) ii and iii only.
• C) i, ii and iii.
• D) Neither i, ii nor iii.

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Definitions:

Required Rate

The minimum return an investor expects to achieve on an investment, considering its risk level and the opportunity cost of forgoing other investments.

Marginal Cost

Marginal cost refers to the increase or decrease in the total cost of producing one more unit of a good or service.

After-Tax Cost

The actual cost of an investment or loan after accounting for taxation, representing the net expense to the investor or borrower.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are expected to generate profit or value over time.