ACC 400 AID Successful Learning / acc400aid.com ACC 400 AID Successful Learning / acc400aid.com | Page 10

b. A $1,000 unrecognized gain on the exchange of a plant asset.
c. A cost basis of $22,400 for the new plant asset
d. A cost basis of $23,600 for the new plant asset
4. Which one of the following is not an objective of a system of internal
controls?
a. Safeguard company assets
b. Overstate liabilities in order to be conservative
c. Enhance the accuracy and reliability of accounting
d. Reduce the risks of errors
records