Which of the Following Statements Concerning Internal Controls Is True

question 28

Multiple Choice

Which of the following statements concerning internal controls is true?

• A)Internal administrative controls are designed to limit the amount of funds spent on investments.
• B)Strong internal controls provide reasonable assurance that the objectives of a company will be accomplished.
• C)Internal accounting controls are limited to the policies and procedures used to protect the company from embezzlement.
• D)The control procedure,separation of duties,prohibits the employment of a husband and wife or other closely related parties within the same company.

Recognize correct accounting treatments for capital assets, including capitalization, amortization, and exemption conditions.

Understand the criteria for recording bequests and donations and their impact on financial statements.

Identify the different financial statements required by not-for-profit organizations and the unique components of each.

Understand the implications of exceeding the revenue threshold of $500,000 for NFPOs on capital asset reporting.

---

Definitions:

Medication Administration

The process of giving a medication to a patient, following the five rights: the right patient, drug, dose, route, and time.

Patient Identification

The process and systems used to ensure the correct patient receives the right healthcare services and interventions.

Medication Error

A medication error is a failure in the process of prescribing, dispensing, or administering a drug, resulting in harmful effects to the patient.

Unintended Synergistic Effect

An unexpected result arising from the combined action of different substances or elements, especially in the context of medications or chemicals, where the combined effect is greater than the sum of their individual effects.