Which of the Following Is a Benefit Provided by Internal

question 138

Multiple Choice

Which of the following is a benefit provided by internal control?

• A)It ensures timely collection of accounts receivables.
• B)It ensures that collusion will never happen.
• C)It guarantees that a business makes profit.
• D)It promotes operational efficiency.

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Definitions:

Debit Side

The debit side of an account records increases in assets or expenses and decreases in liabilities, equity, and income.

T Account

A visual representation of a general ledger account that helps in understanding the effects of transactions on each account.

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Credit Side

The right side of an accounting ledger where credits are recorded, typically indicating an increase in liabilities or revenues or a decrease in assets or expenses.