Which of the Following Best Describes the Goal of Internal

question 69

Multiple Choice

Which of the following best describes the goal of internal controls?

• A)Ensuring the business is profitable.
• B)Enhancing the health of employees.
• C)Improving the accuracy and the reliability of financial information.
• D)Ensuring the compliance with tax regulations.

---

Definitions:

Economic Payoff

The financial return or reward received from an investment or decision, measured in terms of profit or loss.

Equity

Fairness; everyone gets his or her fair share. Since people can disagree about what is “fair,” equity is not as well defined a concept as efficiency.

Rational Decision

The choice made by logically considering all available information, potential costs, and benefits to achieve the optimal outcome.

Bounded Rationality

A concept suggesting that decision-making is limited by the information available, cognitive limitations of the mind, and the finite amount of time available to make a decision.