The Objectives of Internal Control Are to

question 120

Multiple Choice

The objectives of internal control are to

• A) control the internal organization of the accounting department personnel and equipment
• B) provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with
• C) prevent fraud, and promote the social interest of the company
• D) provide control over "internal-use only" reports and employee internal conduct

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Definitions:

Incremental Cost

The additional cost incurred to produce one more unit of a product or service.

Accounts Receivables

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Cash Inflows

Money or value entering a company, often from operations, financing, or investing activities, contributing to the company's cash position.

Credit Policy

The guidelines a company follows to decide the amount and terms of credit to extend to customers.