Which of the Following Is One of the Benefits Provided

question 66

Multiple Choice

Which of the following is one of the benefits provided by internal control?

• A)ensures timely collection of Accounts Receivables
• B)ensures that financial statements are produced timely
• C)guarantees that a business makes profit
• D)promotes operational efficiency

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Definitions:

Retaining Earnings

The portion of net income that is not distributed to shareholders but is kept by the company to be reinvested in its core business or to pay debt.

Flotation Cost

The total costs associated with issuing new securities, including but not limited to underwriting, legal, and registration fees.

Equity Capital

Funds raised by a company through the sale of common or preferred stock, representing ownership interest in the company.

Marginal Tax Rate

The tax rate on the last unit of income.