Which of the Following Is an Internal Control Weakness for a Company

question 52

Multiple Choice

Which of the following is an internal control weakness for a company whose inventory of supplies consists of a large number of individual items?

• A)Supplies of relatively little value are expensed when purchased.
• B)The cycle basis is used for physical counts.
• C)The storekeeper is responsible for maintenance of perpetual inventory records.
• D)Perpetual inventory records are maintained only for items of significant value.

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Definitions:

Synergies

The potential additional value generated from combining two firms, often resulting in cost savings or enhanced revenue.

Mergers

The process in which two or more companies combine to form a new entity, aiming to enhance competitive positioning or expand market share.

Accelerated Debt

A repayment strategy that involves paying off debt more quickly than the standard repayment schedule.

Anti-Takeover Strategy

Tactics employed by a company to prevent or discourage unwanted takeover attempts by another entity.