Internal control Define the term "internal control" and identify the major components of an internal control system
Internal control is a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.
The major components of internal control are:
1 . control environment;
2 . risk assessment;
3 . control activities;
4 . information and communication; and
5 . monitoring.
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Barb purchased a whole life policy on her son, Tom, twelve years ago. She named herself the beneficiary. Tom, now age 19, would like to take out a policy loan to help fund the purchase of a sports car. Barb does not believe that Tom has the right to take out a policy loan. Which contractual provision supports Barb's position?
(a) the assignment clause (b) the incontestable clause (c) the reinstatement clause (d) the ownership clause
Last year a furniture store had an average inventory of $40,000 and it's cost of goods sold was $200,000. How many times did the store replace it's inventory last year?
A. Four times B. Five times C. Three times D. Two Times E. It can't be determined with this information