What Is the Primary Benefit of Effective Internal Control in an Organization

question 11

Multiple Choice

What is the primary benefit of effective internal control in an organization?

• A) Achievement of certain organizational goals.
• B) Completion of a successful audit for the entity.
• C) Shareholder involvement in the company's success.
• D) Obtaining profitability and financial strength.

Analyze changes in financial statements over time through horizontal analysis.

Understand the concept of financial leverage and its impact on return on equity.

Compute and interpret the turnover ratios, including accounts receivable turnover and inventory turnover.

Understand the significance of earnings per share (EPS) and how it affects shareholder value.

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Definitions:

Antianxiety Drugs

Medications used to treat anxiety disorders by reducing symptoms of anxiety.

Antipsychotic Drugs

Medications designed to treat symptoms of psychosis, including hallucinations, delusions, and disturbed thoughts, commonly used in schizophrenia and bipolar disorder.

Hallucinations

Perceptions in the absence of external stimuli, such as seeing or hearing things that aren't there.

Delusions

False beliefs held despite strong evidence against them, often due to a psychological disorder.