Hanover Company Has Established Internal Control Policies and Procedures in Order

question 76

Multiple Choice

Hanover Company has established internal control policies and procedures in order to achieve the following objectives: 1) Safeguard the company's assets.
2) Assure that the accounting records contain reliable information.
3) Effective evaluation of management performance.
4) Assure that employees comply with company policy.
Which of these objectives are achieved by accounting controls?

• A)Objectives 1 and 2
• B)Objectives 2 and 3
• C)Objectives 3 and 4
• D)All four objectives

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Definitions:

Price Volatility

The degree to which the price of an asset, security, or commodity fluctuates over time.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Call Option

A fiscal arrangement that permits the owner to optionally buy a stock, bond, commodity, or another asset at a pre-specified price within a certain period, without being obliged to do so.

Specified Price

A designated price set for the execution of a transaction in securities, contracts, or a commercial agreement.