Which of the Following Is Not a Goal of a System

question 64

Multiple Choice

Which of the following is not a goal of a system of internal control over merchandising transactions?

• A) Prevent the theft of cash and inventory.
• B) Keep enough cash on hand to take advantage of purchase discounts.
• C) Keep the maximum amount of inventory on hand at all times.
• D) Keep credit losses as low as possible.

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Definitions:

Needs Analysis

This process involves determining and addressing gaps between current conditions and desired conditions or needs, often used to identify the necessary changes in an organization or for individual development.

Resource Analysis Process

An assessment methodology used to determine the necessary resources required to achieve specific goals or complete a project.

Sufficient Money

Sufficient Money refers to having enough financial resources to meet one’s needs, obligations, and goals without experiencing financial stress.

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices.