Chester Company Has Established Internal Control Policies and Procedures in Order

question 57

Multiple Choice

Chester Company has established internal control policies and procedures in order to achieve the following objectives:
1) Effective evaluation of management performance.
2) Assure that the accounting records contain reliable information.
3) Safeguard the company's assets.

Which of these objectives are achieved by accounting controls?

• A)Objectives 1 and 2
• B)Objectives 2 and 3
• C)Objectives 3 and 4
• D)All four objectives

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Definitions:

Intoxication

A state of being under the influence of alcohol or drugs to a degree that mental and physical faculties are significantly impaired.

Voidable

A term describing a legal agreement that may be declared invalid by one of the parties due to certain conditions not being met or due to the presence of coercion, misrepresentation, or fraud.

Voluntary

Acting or done willingly and without obligation or compensation.

Public Policy

Principles and standards regarded by the legislature or courts as being of fundamental concern to the state and the whole of society.