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:

Investment

The allocation of resources (such as capital, time, or effort) in the expectation of receiving future benefits or returns.

Credit Balance

The amount of money in a financial repository that surpasses the debit balance and is available for use.

Consolidated Goodwill

The excess value of purchase price over the fair market value of identifiable assets and liabilities acquired during consolidation.

Common Stock

An equity security representing ownership in a corporation, entitling holders to a share of the corporation's residual assets and earnings.