Which of the Following Is an Objective of Internal Control

question 19

Multiple Choice

Which of the following is an objective of internal control?

• A) to encourage employees to follow company policies
• B) to ensure timely payment of accounts payable
• C) to ensure timely collection of accounts receivable
• D) to guarantee that a business makes a profit

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Definitions:

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be positive or negative.

Pollution Abatement

Measures and processes undertaken to reduce, control, or eliminate pollution from various sources.

Optimal Amount

The quantity of a good or service that yields the highest utility or benefits under specific conditions.

Moral Hazard

A situation in economics where one party is more likely to take risks because another party bears the costs of those risks.