The Main Purposes of Internal Controls Include All of the Following

question 54

Multiple Choice

The main purposes of internal controls include all of the following except:

• A)prevention of error,theft,and fraud.
• B)promotion of operational efficiency.
• C)ensuring compliance with laws and regulations.
• D)providing more favorable financial information.

---

Definitions:

Deferred Tax Asset

A deferred tax asset is an accounting term used to describe a situation where a business has paid more taxes or anticipates paying more taxes than it is currently liable for.

Income Tax Liability

The total amount of income tax that an individual or corporation owes to tax authorities.

Income Tax Expense

Income tax expense is the amount of expense that a business recognizes in a given accounting period for the taxes associated with its taxable income.

Journal Entry

A record of a financial transaction in the accounting books of a business or organization.