Internal Controls Are Not Designed to Safeguard Assets from

question 64

Multiple Choice

Internal controls are not designed to safeguard assets from

• A) natural disasters.
• B) employee theft.
• C) robbery.
• D) unauthorized use.

---

Definitions:

Rental Payments

Periodic payments made by a lessee to a lessor for the use of an asset.

Received

A term denoting that something has been accepted or collected, often used in financial transactions or in the acknowledgment of messages or goods.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Fiscal Period

A specific time period used for accounting purposes and financial reporting, typically a year, broken into quarters or months.