Which Statement Is Correct Concerning the Definition of Internal Control

question 18

Multiple Choice

Which statement is correct concerning the definition of internal control developed by the Committee of Sponsoring Organizations (COSO) ?

• A)Its applicability is largely limited to internal auditing applications.
• B)It is a 'process' effected by individuals.
• C)It emphasizes the effectiveness and efficiency of operations over the reliability of financial reporting.
• D)It suggests that it is important to view internal control as an end product as contrasted to a process or means to obtain an end.

---

Definitions:

Working Capital

The variance between a firm's immediate assets and its short-term obligations.

Accumulated Depreciation

The total depreciation of an asset over its life up to a specific point in time, reflecting how much of its value has been used up.

Accounts Payable

Accounts payable represent a company's obligation to pay off a short-term debt to its creditors or suppliers.

Accounts Receivable

The funds that customers owe to a business for products or services already provided but not yet compensated for.