An Example of Poor Internal Control Is

question 119

Multiple Choice

An example of poor internal control is

• A) The accountant should not have physical custody of the asset nor access to it.
• B) The custodian of an asset should not maintain or have access to the accounting records.
• C) One person should be responsible for handling related transactions.
• D) A salesperson makes the sale and a different person ships the goods.

Discern the principle of double-entry bookkeeping as it applies to changes in cash balance reported on the statement of cash flows.

Understand the components and categorization of cash flows within operating, investing, and financing activities.

Identify and differentiate between direct and indirect methods of preparing cash flows from operating activities.

Analyze the impact of specific transactions on the cash flow statement and its sections (operating, investing, financing).

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Definitions:

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