Which of the Following Statements Concerning Internal Controls Is True

question 44

Multiple Choice

Which of the following statements concerning internal controls is true?

• A)Internal administrative controls are designed to limit the amount of funds spent on investments.
• B)Strong internal controls provide reasonable assurance that the objectives of a company will be accomplished.
• C)Internal accounting controls are limited to the policies and procedures used to protect the company from embezzlement.
• D)The control procedure,segregation of duties,prohibits the employment of a husband and wife or other closely related parties within the same company.

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Definitions:

Variability

The degree to which data points in a statistical distribution or data set diverge from the average or mean value.

Respondents

Individuals who answer or respond to surveys or questionnaires in a research study.

Household Income

The total income earned by all members of a household, including wages, investments, and any other sources of income.

Proportion

A part, share, or number considered in comparative relation to a whole; often expressed as a fraction or percentage.