The Two Main Objectives of Internal Controls Are

question 57

Multiple Choice

The two main objectives of internal controls are

• A) to support the automated parts of the business in the functioning of the controls in place.
• B) to prevent or detect misstatements in the financial statements.
• C) both a and b
• D) none of the above

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Definitions:

Market Price

The price at which goods and services are sold in the market, determined by the forces of supply and demand.

Profit

The financial gain made in a transaction or operation, calculated as total revenue minus total costs.

Total Variable Costs

The complete costs that vary with output level, such as materials and labor, in the production process.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.