An Internal Control System Consists of All of the Following

question 68

Multiple Choice

An internal control system consists of all of the following policies and procedures except those necessary to ensure

• A)the safeguarding of an entity's assets.
• B)that cash on hand and on deposit in checking accounts is beyond the minimal amount for ongoing operations.
• C)the reliability of an entity's accounting records.
• D)the accomplishment of an entity's overall objectives.

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Definitions:

Economic Incentive

An economic incentive is a financial reward or penalty that motivates individuals or firms to pursue certain courses of action or to employ certain resources in a specific way.

Unanimity

Complete agreement among all members or participants in a particular decision or vote.

Voting Structure

The method or system used to carry out the process of voting or making decisions within an organization or a country.

Economic Efficiency

The optimal distribution of resources in a society, minimizing waste and maximizing value.