What Is the Primary Benefit of Effective Internal Control in an Organization

question 11

Multiple Choice

What is the primary benefit of effective internal control in an organization?

• A) Achievement of certain organizational goals.
• B) Completion of a successful audit for the entity.
• C) Shareholder involvement in the company's success.
• D) Obtaining profitability and financial strength.

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Definitions:

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as the election of the board of directors.

Bonds Payable

Long-term liabilities representing money owed by an entity to bondholders, to be repaid at a specified maturity date with interest.

Straight Line Amortization

A method of evenly spreading the cost of an asset over its useful life for accounting and tax purposes.

Straight Line Amortization

A technique for uniformly distributing the expense of an intangible asset across its lifespan.