Which of the Following Is NOT a Benefit to Be

question 31

Multiple Choice

Which of the following is NOT a benefit to be derived from an efficient system of internal control?

• A) Assets are protected against damage or loss.
• B) Defalcations are completely eliminated.
• C) The conduct of the business is more orderly.
• D) Errors are identified and corrected on a timely basis.

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Definitions:

Trading Securities

Financial instruments held by a firm for the purpose of short-term profit through trading on a stock exchange.

Sale

The act of selling a product or service in exchange for money or other compensation.

Equity Securities

Financial instruments that represent ownership interest in a company, such as stocks.

Significant Influence

The power to participate in the financial and operating policy decisions of an investment but is not control or joint control of those policies.