The Purpose of Internal Controls Includes All of the Following

question 39

Multiple Choice

The purpose of internal controls includes all of the following except:

• A)to improve efficiency.
• B)to reduce waste.
• C)to minimize errors.
• D)to eliminate fraud.

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Definitions:

Interest Rate

Refers to the cost of borrowing money, expressed as a percentage of the amount loaned, or the return on invested savings.

Loanable Funds

The money available for borrowing in the financial markets, determined by the saving rates of individuals and the banking sector's policies.

Inflation Rate

A measure of the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Real Rate

This is the interest rate adjusted for inflation, representing the real cost of borrowing and the real yield to lenders or investors.