One Characteristic of an Effective System of Internal Control Is

question 65

True/False

One characteristic of an effective system of internal control is competent, reliable, and ethical personnel.

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Definitions:

Future Cash Flows

Estimates of the amount of money expected to flow in and out of the business in the future.

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.

Factored Receivables

Accounts receivable that have been sold to a third party (the factor) for immediate cash, minus a fee.

Cash Collections

The process of gathering all cash payments received from customers for goods or services provided.