Match the ERM Objective with the Appropriate Definition

question 101

Multiple Choice

Match the ERM Objective with the appropriate definition.
-Reporting objectives

• A)These objectives relate to the reliability of the enterprise's reporting, both internal and external.
• B)These objectives relate to the effective and efficient use of the entity's resources.
• C)These objectives relate to goals that support the entity's mission.
• D)These objectives relate to the entity's compliance with all applicable laws and regulations.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, listing assets, liabilities, and shareholders' equity.

Income Statement

A financial document that outlines a company's revenues, expenses, and profits over a specified period, demonstrating its financial performance.

Expenses

Costs incurred in the process of earning revenue, which are subtracted from revenues to calculate net income.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.