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The Internal Control Process of Requiring Management Approval of Fixed

question 56

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The internal control process of requiring management approval of fixed asset changes prior to recording the transaction, will help to minimize the risk of:


Definitions:

Future Cash Flow

Projected cash receipts and disbursements over a future period, indicating the amount of money expected to flow in and out of the business.

Present Value

The contemporary valuation of a future money sum or ongoing cash flows, factoring in a defined interest rate.

Rate of Return

The percentage of profit or loss on an investment over a period.

Guaranteed Rate

A promised or assured rate of return on an investment or loan.

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