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The deed prohibits partners from making personal purchases in the firms name. What is the main control objective?

Answer and explanation

Correct answer: To protect firm liabilities from unauthorized personal expenses

Personal purchases in the firms name may create wrong liabilities for the firm. This clause strengthens internal control.

Related tags

Private PurchaseLiabilityInternal ControlPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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