In the study of internal control, the auditor uses sampling to compare the adjusted estimate of the deviation rate to the tolerable rate of deviation.
How Do Internal Controls Work?
A plan of structure, processes, and records that are concerned with the security of assets and the accuracy of financial records are together referred to as internal controls.
Fundamentals of Internal Control Systems
A firm's unique information requirements should be taken into account when designing an internal control system. As a result, the system might be anything from a straightforward manual system to a sophisticated computerized online system with remote terminals dispersed all over the nation. The accounting system must process data effectively, precisely, and promptly whether it is electronic or manual. An internal control system that has been carefully thought out is at the core of any well-designed accounting system.
Protecting the assets under management's control is one of their main duties.
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<span>The correct option is,"Safe harbor".
The U.S. Department of Commerce developed a safe harbor framework in order to enable U.S. businesses to legally use personal data from EU countries.
</span>Safe Harbor refers to an agreement that is between the United States Department of Commerce and the European Union that directed in such a way that U.S. organizations could export and handle the individual information and personal data of European nationals.
Answer:
The correct answer is: add exports but subtract imports in calculating GDP.
Explanation:
National income refers to the production of goods and services by the residents of a nation within the geographical boundaries of a nation in a given period.
In the calculation of national income, net exports are included. This net export is the difference between exports and imports. In other words, we can say that exports are added and imports are included.
Answer:
B. Less than 10%
Explanation:
An addition increase by 10 % in the physical capital stock (which is a factor of production consisting of man made goods like machineries and so on) will lead to a less than 10% increase in the Gross domestic product. This is due to the law of diminishing marginal utility which talks about the consumption increases marginal utility from each additional unit declines. Thus, the more the physical capital stock increases, the GDP will increase at a decreasing rate.
Answer:
(A) Payback period for the machine= 3.5 years
(B) Simple rate of return for the machine= 87.5%
Explanation:
Alesu corporation is considering purchasing a machine that would cost $283,850
The useful life is 5 years
The machine would reduce cash operating costs by $81,100 per year
The salvage value is $107,100
(A) The payback period for the machine can be calculated as follows
= cost/amount of cash flow
= 283,850/81,100
= 3.5 years
(B) The simple rate of return for the machine can be calculated as follows
First we calculate the depreciation expense
= 283,850-107,100/5
= 176,750/5
= 35,350
Annual incremental income= cost savings -depreciation expenses
= 283,850-35,350
= 248,500
Simple rate of return = annual incremental income/cost × 100
= 248,500/283,850 × 100
= 0.875 × 100
= 87.5%
