The Text Identified Four Basic Purposes of Internal Control and Several

question 13

Multiple Choice

The text identified four basic purposes of internal control and several examples of specific controls. Which of the following demonstrates the strongest relationship between them?

• A) Safeguarding assets, bank reconciliation.
• B) Ensuring financial statement reliability, pre-numbered documents.
• C) Promoting operating efficiency, bank reconciliation.
• D) Encouraging compliance with management directives, pre-numbered documents.

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Definitions:

Household Bleach

A common cleaning and disinfecting agent made primarily of sodium hypochlorite, used in homes to sanitize surfaces and fabrics.

Cleaning Surfaces

The act of removing dirt, dust, or other impurities from surfaces to maintain hygiene and reduce the spread of infection.

Owner's Equity

The owner's residual interest in the assets of the company after deducting liabilities, representing the owner's stake in the business.

Total Assets

The sum of all assets, both current and noncurrent, owned by a business.