Which One of the Following Is Not an Objective of a System

question 154

Multiple Choice

Which one of the following is not an objective of a system of internal controls?

• A) Safeguard company assets
• B) Overstate liabilities in order to be conservative
• C) Enhance the accuracy and reliability of accounting records
• D) Reduce the risks of errors

---

Definitions:

Credit Sales

Transactions where the customer purchases goods or services on credit and pays the seller at a later date.

Bank Credit Cards

Payment cards issued by banks that allow cardholders to borrow funds within a pre-approved limit for purchases or cash advances.

Freight-In

The cost associated with transporting raw materials or goods into a facility, typically considered as part of the inventory cost.

Cost of Goods Sold

The total cost of materials and labor directly involved in producing goods sold by a company during a specific period.