Which of the Following Is NOT an Element of a Good

question 37

Multiple Choice

Which of the following is NOT an element of a good control environment?

• A) Trust
• B) Modeling
• C) Appropriate hiring
• D) Management's communication

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Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, displaying net profit or loss.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.