Which of the Following Is Not One of the Purposes

question 41

Multiple Choice

Which of the following is not one of the purposes of internal control?

• A)to encourage employees to follow company policy
• B)to safeguard the company's assets
• C)to ensure accurate, reliable accounting records
• D)to guarantee that a business makes a profit

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Definitions:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Provisions

Liabilities of uncertain timing or amount, set aside for future expenses or liabilities.

Timing

Refers to the selection of specific times for events to occur, which can influence the efficiency and effectiveness of operations, investments, and financial reporting.

Amount

A quantity of something, typically the total figured in numbers or unit of measure.