Examlex

Solved

Discuss the Characteristics of an Effective System of Internal Control

question 70

Essay

Discuss the characteristics of an effective system of internal control for cash payments by cheque. Include the specifics for a purchase of merchandise for resale.


Definitions:

Discount

A reduction applied to the face value of a product, service, or security to encourage purchase or investment.

Net 60

A payment term indicating that payment is due 60 days after the invoice date.

Effective Annual Rate

The interest rate on a loan or financial product restated on an annual basis, taking compounding into account.

Credit Terms

The conditions under which credit will be extended to a borrower, including repayment periods and interest rates.

Related Questions