The Objectives of Internal Control Are to

question 72

Multiple Choice

The objectives of internal control are to

• A) control the internal organization of the Accounting Department personnel and equipment
• B) provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with
• C) prevent fraud and promote the social interest of the company
• D) provide control over "internal-use only" reports and employee internal conduct

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Definitions:

Cost Purchased

The total price paid to acquire goods or services, including the purchase price and any additional charges necessary to obtain the asset.

Production Budget

A financial plan that estimates the number of units to be produced to meet sales goals and manage inventory levels.

Beginning Units

The quantity of inventory on hand at the start of an accounting period.

Ending Units

The quantity of inventory items or goods unsold at the end of an accounting period.