Which of the Following Is NOT a Benefit to Be

question 31

Multiple Choice

Which of the following is NOT a benefit to be derived from an efficient system of internal control?

• A) Assets are protected against damage or loss.
• B) Defalcations are completely eliminated.
• C) The conduct of the business is more orderly.
• D) Errors are identified and corrected on a timely basis.

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Definitions:

Fiscal Year

A one-year period that companies use for accounting and financial reporting purposes, which may or may not coincide with the calendar year.

Unexpired Insurance

The portion of an insurance premium that has not yet been used up and is considered a prepaid expense for the company.

Supplies Expense

The cost associated with consumable items or supplies used during a company's operations within an accounting period.

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.