An Internal Control System Consists of the Policies and Procedures

question 145

Multiple Choice

An internal control system consists of the policies and procedures used to accomplish all of the following except:

• A)Protect assets.
• B)Ensure reliable accounting.
• C)Guarantee a return to investors.
• D)Urge adherence to company policies.
• E)Promote efficient operations.

Recognize the protections afforded by the Age Discrimination in Employment Act and the Americans with Disabilities Act.

Understand the provisions and applications of the Family and Medical Leave Act (FMLA).

Comprehend the process of formation, dissolution, and termination of partnerships.

Grasp the concept of employment at will and recognize federal statutes prohibiting employment discrimination.

---

Definitions:

Business's Accounts

Records that summarize a company's financial transactions, including assets, liabilities, revenues, and expenses.

Expense

A cost or charge that is incurred in the process of generating revenue, typically classified on an income statement.

Liability

A financial obligation or amount owed by an individual or entity, typically representing loans or accounts payable.

Asset

Resources owned or controlled by a business that are expected to produce future economic benefits.