The Objectives of Internal Control Are to

question 113

Multiple Choice

The objectives of internal control are to

• A)control the internal organization of the accounting department personnel and equipment
• B)provide reasonable assurance that assets are safeguarded and used for business purposes,financial reports are accurate,and laws and regulations are complied with
• C)prevent fraud,and promote the social interest of the company
• D)provide control over "internal-use only" reports and employee internal conduct

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Definitions:

Incremental Sales

The additional revenue generated from an increase in sales activities or volume above a baseline level.

Cash Operating Expenses

Expenses that a company pays out in cash during an accounting period, excluding non-cash expenses like depreciation.

After-Tax Discount

The reduced value of a cash flow or series of cash flows after accounting for the impact of income tax.

Straight-Line Depreciation

is a method of allocating the cost of a tangible asset over its useful life in equal annual amounts.