Internal Control Is a Process Effected by the Organization's Board

question 105

Multiple Choice

Internal control is a process effected by the organization's board of directors,management,and other personnel to provide reasonable assurance of achieving certain objectives.Which of the following does not fit into one of these categories of objectives?

• A)Reliability of financial reporting.
• B)Compliance with laws and regulations.
• C)Continuing existence.
• D)Effectiveness and efficiency of operations.

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Definitions:

Total Utility

The total satisfaction or benefit a person derives from consuming a certain quantity of goods or services.

Consumer Derives

The satisfaction or utility that a consumer obtains from purchasing and using goods or services.

Satisfaction

The fulfilment of one's needs or desires through the consumption of goods or services, often used as a measure of consumer contentment with a product.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.