Question

Which of the following is one of the purposes of internal controls?

To safeguard a company's assets

To evaluate markets for the best future value

To guarantee that a business makes a profit

To determine the kind of demographic for a product

Answer 1

One of the purposes of internal controls is **to safeguard a company's assets**. Internal controls are processes and procedures put in place to protect the company's resources, ensure the accuracy of financial reporting, and promote operational efficiency.