Which of the Following Is Not One of the Operating

question 2

Multiple Choice

Which of the following is not one of the operating benefits provided by a strong system of internal controls?

• A) Streamlining accounting and financial information systems.
• B) Improving the company's financial activities.
• C) Identifying procedures that are not cost effective.
• D) Isolating transactions that generate significant profits or losses.

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Definitions:

Notes to The Financial Statements

A detailed part of a company's financial statements that explains the context, accounting policies, and additional details of the financial figures reported.

Required Disclosures

Information that organizations are legally obligated to make available to stakeholders, often relating to financial, operational, or ethical matters.

Fixed Asset

Long-term tangible property owned by a business that is used in its operations to generate income, such as buildings, machinery, and equipment.

Operating Reserves

Funds set aside by an organization to cover future expenses or emergencies, contributing to financial stability and operational resilience.