The basic concept of internal control that recognizes the cost of internal control should not exceed the benefits expected to be derived is known as:
A. Management responsibility.
B. Reasonable assurance.
C. Limited liability.
D. Management by exception.
Answer: B
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As described in the text, William George, the former chairman and CEO of Medtronic, has outlined a connection between his company’s mission and values and what?
a. a strong vision statement b. employee retention c. ethical organizational culture d. profits and shareholder value
The grouping of related activities into units is called ______.
a. division of labor b. coordination c. departmentalization d. unity of command and direction
A newspaper has a circulation of 800,000 and a per-page advertising rate of $10,000 . Its cost per thousand equals _____
a. $8.00 b. $10.00 c. $12.50 d. $80.00
A shipper moving expensive goods of small size from Boston to Seattle would likely use:
A) rail. B) air. C) motor. D) water. E) none of the above