All categories

2 years ago

The most important fundamental component of an entity's internal control is:

Business

1 answer:

rosijanka [135]2 years ago

6 0

Answer:

b) People who operate and function within the control system.

Explanation:

Internal controls are the process and mechanisms that an organization puts in place to ensure the integrity of its accounting and financial information. Internal control helps a business achieve operational efficiency and effectiveness. It ensures that a company financial reporting complies with the relevant laws, policies, and regulations.

The people working in internal control determines whether the mechanisms will succeed or fail. Employees assigned in internal control must be of high integrity and be able to discharge their duties without fear or favor. Internal control protects company resources from theft, wastage, or misuse. For internal control to achieve its purpose, the Individuals in that department must not comprise in any situation.

You might be interested in

A firm has a profit margin of 12 percent; total asset turnover of 0.55 and an equity multiplier of 2.2. What is the firm's ROA a

lutik1710 [3]

Answer:

ROA = 6.6%

ROE 14.52%

Explanation:

profit margin = net income / sale = 12%

assets turn over = sales / assets = 0.55

equity mutiplier = assets / equity = 2.2

ROE = return on equity = net income / equity

ROA = return on equity = net income / assets

we use the fraction properties to get ROE and ROA

$\frac{income}{sales} \times \frac{sales}{Assets} =\frac{income}{Assets} \\ 0.12 \times 0.55 = 0.066\\$

ROA = 6.6%

We apply the same property to get ROE

$\frac{income}{assets} \times \frac{assets}{equity} =\frac{income}{equity} \\ 0.066 \times 2.2 = 0.14252\\$

ROE = 14.52%

6 0

3 years ago

Unemployment insurance makes workers _____ likely to negotiate for job security when searching for a job and _____ likely to hav

vlada-n [284]

Unemployment insurance makes workers less likely to negotiate for job security when searching for a job and more likely to have a long job search.

Explanation:

Unemployment insurance is a compensation protection where people lost their jobs and follow all eligibility criteria without blame.

Unemployment insurance Workers who are self-employed and willingly fired do not have a career security policy and have to use discretionary funds to cover cases where there is no work available. State governments pay a jobless insurance

Unemployment insurance supports unemployed workers actively seeking work with cash scholarships. The Federal Unemployment Tax Act (FUTA) and state employment programs offer benefits for qualifying unemployed workers. There was a misunderstanding. Most employers pay FUTA tax on federal and state unemployment.

7 0

2 years ago

Retirement planning should begin at what age?

bezimeni [28]

Answer:

Explanation:

6 0

2 years ago

A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest

Yuki888 [10]

Answer:

Present Value of the loan = $19999.36 rounded off to $20000

Explanation:

The present value of loan will comprise of the present value of the principal amount of loan plus the present value of the interest that the loan will charge for the 3 year time period for which it is outstanding. As the interest payments are fixed and occur after equal intervals of time, they are considered an annuity.

To calculate the present value of the loan, we must discount the interest payments using the present value factor of annuity given in the question as 2.5771 and we must discount the principal to present value using the present value factor given in question as 0.7938.

We will first calculate the annual interest payment on loan.

Annual Interest payment = 20000 * 0.08 = 1600

Present value of the Interest payment - annuity = 1600 * 2.5771

Present value of the Interest payment - annuity = $4123.36

Present value of the Principal loan = 20000 * 0.7938

Present value of the Principal loan = $15876

Present Value of the loan = 15876 + 4123.36

Present Value of the loan = $19999.36 rounded off to $20000

7 0

2 years ago

Bakers corp will pay a dividend of 5.15 8.05 and 11.25 per share for each of the next three years respectively. the company will

Pani-rosa [81]

Answer: $19.40

Explanation:

Based on the information given in the question, the following can be deduced:

D1 = $5.15

D2 = $8.05

D3 = $11.25

Rate of return = 11% = 0.11

The current stick price will be calculated as:

= 5.15/(1 + 0.11) + 8.05/(1 + 0.11)^2 + 11.25/(1 + 0.11)^3

= 5.15/1.11 + 8.05/(1.11)^2 + 11.25/(1.11)^3

= $4.64 + $6.53 + $8.23

= $19.40

5 0

2 years ago