Which of the following is not a goal of a system of internal control over merchandising transactions?
A) Prevent the theft of cash and inventory.
B) Keep enough cash on hand to take advantage of purchase discounts.
C) Keep the maximum amount of inventory on hand at all times.
D) Keep credit losses as low as possible.

Question

Quizplus · Accepted Answer

Keeping the maximum amount of inventory on hand at all times is not a goal of a system of internal control over merchandising transactions. The goal is to maintain adequate inventory levels to meet customer demand without overstocking, which can tie up cash and increase the risk of theft and damage. Maintaining optimal inventory levels helps to prevent cash shortages and improve operational efficiency, but it is not a direct goal of internal control.

Which of the Following Is Not a Goal of a System