Which of the Following Is NOT One of the Purposes

question 65

Multiple Choice

Which of the following is NOT one of the purposes of internal control?

• A) To encourage employees to follow company policy
• B) To safeguard the company's assets
• C) To ensure accurate, reliable accounting records
• D) To guarantee that a business makes a profit

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Definitions:

Loans

Financial agreements wherein a lender gives money or assets to a borrower, and the borrower agrees to return the property or repay the borrowed money, usually along with interest, at a future point in time.

Financial Crises

Severe disruptions in financial markets that occur when there is a sudden loss of confidence among investors, depositors, or consumers, often leading to a liquidity shortfall and economic downturn.

Financial Markets

Platforms or systems that facilitate the buying, selling, and trading of financial assets like stocks, bonds, and commodities, allowing for the allocation of capital and risk.

Discount Rate

The interest rate charged by central banks on loans they provide to commercial banks or financial institutions.