Safeguarding Assets Is One of the Control Objectives of Internal

question 54

Multiple Choice

Safeguarding assets is one of the control objectives of internal control.Which of the following is not one of the other control objectives?

• A) providing accurate and reliable information
• B) promoting operational efficiency
• C) ensuring that no fraud has occurred
• D) encouraging adherence to management policies

---

Definitions:

Minimum Required Rate

The least acceptable rate of return on an investment, often used in capital budgeting to assess potential projects.

Operating Assets

Assets used by a business in its daily operations to generate revenue, excluding investments and non-essential properties.

Contribution Margin Ratio

A financial metric that shows the portion of sales revenue that exceeds variable costs, indicating how sales affect profitability.

Fixed Expenses

A rephrased definition could focus on the costs that do not vary with the level of production or business activity, which may include long-term contractual obligations and basic operational costs.