Match the Internal Control Principle Below with the Appropriate Cash

question 47

Essay

Match the internal control principle below with the appropriate cash disbursements procedure described.

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Definitions:

Statement of Cash Flows

A financial document detailing the inflow and outflow of cash within a company, showing how changes in the balance sheet and income affect cash and cash equivalents.

Parentheses

Symbols used in writing () to include additional information or clarify something within a sentence.

Indirect Method

A way to present the cash flow statement where net income is adjusted for non-cash transactions, changes in working capital, and operational activities to yield cash flow from operations.

Depreciation Expense

An accounting method used to allocate the cost of a tangible or physical asset over its useful life.