Which of the following is representative of safeguarding assets: a. attaching electronic sensors...

Question:

Which of the following is representative of safeguarding assets:

a. attaching electronic sensors to merchandise inventory.

b. reducing expense to increase operating profit.

c. increasing operating profit to increase net income.

d. allowing company accountants to handle cash.

What Are Safeguard Controls:

Safeguard Controls are part of a company's internal control environment and relates specifically to the assets that the company keeps on hand. Safeguard Controls are designed to minimize the risk of theft occurring (from both internal and external sources).

Answer and Explanation:

The correct answer is a. attaching electronic sensors to merchandise inventory.

  • The electronic sensors protect inventory from being stolen by sending a notification to the company whenever items are removed from their storage location.

Learn more about this topic:

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Safeguards & Controls of Banking Activities

from Accounting 101: Financial Accounting

Chapter 5 / Lesson 3
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