To Be Effective, Control Systems Must

question 88

Multiple Choice

To be effective, control systems must

• A) be based on subjective standards.
• B) communicate needed information upward in the organization.
• C) be acceptable to top stockholders.
• D) use multiple approaches.
• E) centralize decision making.

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Definitions:

Taxable

Subject to taxation by governmental authorities.

Economic Benefit

The advantage or gain received from resources or actions, typically measured in terms of monetary value.

Exempt

Income, property, or persons not subject to taxation under certain conditions or qualifications.

Itemized Deduction

Itemized Deduction involves listing individual tax deductions for which a taxpayer qualifies, as opposed to taking a standard deduction, to reduce taxable income.