Companies recognize profit under the cost-recovery method only when cash collections exceed the total cost of the goods sold.

The quantity of products that will be sold in the market at various prices for a specified time period is referred to as which of the following?

a. demand b. supply c. equity d. inventory

Directors, management, external auditors, and internal auditors all play important roles in creating proper control procedures. Senior management is primarily responsible for:

a. Establishing and maintaining an organizational culture. b. Implementing and monitoring controls designed by the board of directors. c. Reviewing the reliability and integrity of financial and operational information. d. Determining the organization's risk appetite. e. Ensuring that external and internal auditors oversee the administration of the system of risk management and control processes.