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

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Definitions:

Required Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Expected Growth Rate

The annual rate at which an investment, company revenue, or economy is expected to grow over a future period.

Rate of Return

The achievement or shortfall in value of an investment during an established time, shown as a percentage of the investment’s original financial input.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional shares.