Administrative Controls

question 77

Multiple Choice

Administrative controls

• A) Are concerned with efficient operations and adherence to managerial policies
• B) Are concerned with the reliability of the financial statements
• C) Are the responsibility of the company's auditors
• D) Are concerned primarily with safeguarding assets

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Definitions:

Operating Activities

These are the day-to-day actions involved in running a business, which include generating revenue, incurring expenses, and producing the fundamental cash flows of the business.

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts.

Operating Cash Receipts

Operating cash receipts are the cash inflows related to a company's primary business operations, such as cash received from selling products or services.

Cash Payments

Cash payments refer to monetary transactions in which cash is used to settle the amount owed for goods or services.