The Importance of a Good System of Internal Controls Was

question 210

Multiple Choice

The importance of a good system of internal controls was recognized with the passage of

• A) the Securities and Exchange Act of 1933.
• B) the Securities and Exchange Act of 1994.
• C) the Blue Sky Laws.
• D) the Foreign Corrupt Practices Act of 1977.

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Definitions:

Inventory Turnover

An index that displays the number of times a firm's inventory turns over and is replenished during a specific period.

Total Current Assets

These are all the assets of a company that are expected to be sold, consumed, used, or converted into cash within one year or within the business's normal operating cycle.

Statement of Cash Flows

A financial report detailing the impact of variations in balance sheet accounts and income on cash and cash equivalents, segmented into operating, investing, and financing activities.

Accounts Receivable

Accounts receivable is the amount of money owed to a company for goods or services it has sold on credit.