Which of the Following Is Not Necessarily One of the Benefits

question 4

Multiple Choice

Which of the following is not necessarily one of the benefits of effective internal control?

• A) Safeguarding of assets
• B) A sound liquidity position
• C) More accurate accounting data
• D) A more efficient accounting system

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Definitions:

Fair Value

The value that could be gained from the sale of an asset or the expense of transferring a liability, in a regulated transaction among market players on the date of assessment.

Asset Acquired

An item of economic value obtained by a company, expected to provide future benefit by generating cash flows or reducing expenses.

Future Service Potential

The potential of an asset to contribute to future operations and cash flows of an organization.

Physical Substance

A characteristic of tangible assets, meaning they have a physical form and can be seen, touched, and measured.