A Primary Purpose of Internal Controls Is to

question 38

Multiple Choice

A primary purpose of internal controls is to

• A) Form a basis for evaluating employees.
• B) Monitor production quality.
• C) Avoid clerical errors.
• D) Meet objectives of maintaining reliable documents and records and accurate financial reporting.

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating income or profit.

Rule Of Thumb

A practical and general principle applied to approximate or make judgments without the need for precise calculations.

Research And Development

The investigative activities a business or institution conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Seed-stage Financing

Funding provided to new startups to assist in their initial development and growth phases.