A Good System of Internal Controls Requires That the Physical

question 140

True/False

A good system of internal controls requires that the physical custody of assets be separated from the accounting for those assets.This concept is known as safeguarding assets and records.

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Definitions:

Lottery Ticket

A piece of paper or a digital token that allows the holder a chance to win a prize in a drawing of lots.

Inter Vivos Gift

A gift given by a living person during their lifetime, as opposed to a bequest or legacy left in a will, which does not take effect until after the donor's death.

Constructively Presented

A concept where something is deemed to be presented or made available through implication or through the circumstances, rather than by direct presentation.

Donative Intent

The intention to give a gift expressed by a donor, a key requirement in the law of gifts to demonstrate that a transfer is indeed intended as a gift.