Which of the Following Is NOT One of the Purposes

question 12

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 guarantee that a business makes a profit
• C)To safeguard the company's assets
• D)To ensure accurate, reliable accounting records

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Definitions:

Product Warranty Expense

The cost associated with repairing or replacing products under warranty, recognized by companies to cover future warranty claims.

Warranty Repairs

Services offered for free by a manufacturer or seller to correct defects or malfunctions within a certain period after purchase.

Warranty Expense

Costs that a company anticipates or incurs when repairing or replacing products under warranty to meet its customers' expectations or contractual obligations.

Installment Note

A debt instrument that requires a series of periodic payments, typically consisting of both principal and interest.