Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

Financial Accounting

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

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Multiple Choice

An internal control system is designed to do all but which of the following?

Enhance the reliability of financial reporting

Guarantee profitability for the company

Safeguard company assets

Ensure compliance with laws and regulations

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Verified step by step guidance

Step 1: Understand the purpose of an internal control system. Internal control systems are designed to provide reasonable assurance regarding the achievement of objectives in the following categories: reliability of financial reporting, compliance with laws and regulations, and safeguarding of assets.

Step 2: Recognize that internal control systems are not designed to guarantee profitability. Profitability depends on various external and internal factors, such as market conditions, business strategies, and operational efficiency, which are beyond the scope of internal controls.

Step 3: Review the options provided in the question. Identify which functions align with the objectives of internal control systems (e.g., enhancing financial reporting reliability, safeguarding assets, ensuring compliance).

Step 4: Compare the options to the purpose of internal control systems. The option 'Guarantee profitability for the company' does not align with the objectives of internal control systems, as profitability is not guaranteed by these systems.

Step 5: Conclude that the correct answer is the option that does not align with the purpose of internal control systems, which is 'Guarantee profitability for the company.'