Based on the Four Purposes of Internal Controls Discussed in the Text

question 1

Multiple Choice

Based on the four purposes of internal controls discussed in the text, which of the four pairs listed are the most similar based on those purposes?

• A) Safeguarding assets, data encryption.
• B) Ensuring financial statement reliability, internal audits.
• C) Promoting operating efficiency, restrictive endorsements.
• D) Encouraging compliance with management directives, insurance and bonding.

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Definitions:

Sales Analysis

The evaluation and study of actual sales in a given period, helping businesses understand sales performance and trends.

Return on Marketing Investment

A calculation used to assess the efficiency and profitability of marketing expenditures.

Gross Margin

The difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage.

Marketing Activities

Actions or initiatives undertaken by companies to promote their products or services, including advertising, social media campaigns, and public relations.