Effective Internal Controls Are Designed to Help Organizations Achieve Which

question 53

Multiple Choice

Effective internal controls are designed to help organizations achieve which of the following objectives?

• A)Reliability of financial reporting
• B)Efficiency and effectiveness of operations
• C)Compliance with applicable laws and regulations
• D)All of the above

---

Definitions:

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.

Uncollectible Receivables

Amounts owed to a company that it does not expect to collect and thus considers a loss.

Journalize

The process of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.

Percent of Sales Method

A financial analysis technique used to forecast future expenses or account balances as a percentage of sales revenue.