Match the Following Elements of Internal Control

question 8

Multiple Choice

Match the following elements of internal control:
-monitoring

• A)provides reasonable assurance that business goals will be achieved
• B)used by management for guiding operations and ensuring compliance with requirements
• C)overall attitude of management and employees
• D)used to locate weaknesses and improve controls
• E)identify, analyze and assess likeliness of vulnerabilities

Recognize the components and classifications of cash flows within the statement (operating, investing, and financing activities).

Distinguish between cash flows from operating activities and other activities (investing and financing).

Identify examples of cash flows from investing and financing activities.

Understand the adjustments made to net income in computing cash flows from operating activities using the indirect method.

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Definitions:

Sales Adjusted

A metric reflecting changes or modifications to sales figures for purposes such as accounting adjustments or performance analysis.

Cost of Goods Sold

The direct costs tied to the production of the goods sold by a company, including direct labor, materials, and manufacturing overhead.

Direct Method

A cash flow statement preparation approach that lists major classes of gross cash receipts and payments.

Operating Activities

Business activities related directly to the production and delivery of goods and services, generating revenue and cash flow.