Which of the Following Is Not Stated as a Primary

question 17

Multiple Choice

Which of the following is not stated as a primary objective of a company's internal control policies and procedures?

• A)The proper recording and authorization of transactions.
• B)The maintenance of adequate records.
• C)The prevention or detection of unauthorized activities involving a company's records.
• D)The provision of current information for outside investors and analysts.

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Definitions:

Franchise

A business model that allows individuals or entities to operate a business under an established brand and business system in exchange for fees and adherence to certain standards.

Equipment

Tangible property used in operations, such as machinery or computers, that has a useful life beyond a single reporting period.

Depreciation

The process of allocating the cost of a tangible asset over its useful life.

Straight-Line Basis

An accounting method of depreciation where the value of an asset is reduced evenly over its useful life.