Which of the Following Statements Concerning Internal Controls Is True

question 164

Multiple Choice

Which of the following statements concerning internal controls is true?

• A) Internal administrative controls are designed to limit the amount of funds spent on investments.
• B) The control procedure, separation of duties, prohibits the employment of a husband and wife or other closely related parties within the same company.
• C) Internal accounting controls are limited to the policies and procedures used to protect the company from embezzlement.
• D) A strong internal control system provides reasonable assurance that the objectives of a company will be accomplished.

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Definitions:

Allergic Reaction

an immune system response to a foreign substance that's not typically harmful to your body, like pollen, food, or pet dander.

Allergen

A substance that stimulates an allergic reaction.

IgE

Immunoglobulin E, a class of antibodies produced by the immune system in response to allergens, responsible for allergic reactions.

Mast Cell

A type of white blood cell part of the immune system, containing granules rich in histamine and heparin, involved in allergic reactions and inflammation.