Which of the Following Is True of Internal Control

question 64

Multiple Choice

Which of the following is true of internal control?

• A)A company's outside auditor is responsible for the company's internal control system.
• B)One of the major purposes of internal control is to ensure that the assets are safeguarded.
• C)Internal control procedures tend to diminish the importance of operational efficiency.
• D)Internal controls are mainly used to ensure timely payment of liabilities.

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Definitions:

Merchantability

An implied warranty that a product will meet reasonable expectations of quality and usability for the purpose it was sold for.

Express Warranty

A statement by a seller about the quality, condition, or performance of a product that forms part of the contractual agreement between the buyer and seller.

Super Store

A large retail establishment offering a wide variety of goods, often at lower prices, under one roof.

Injury

Physical harm or damage to a person's body, often resulting from accidents or violence.