One Example of Internal Controls Is

question 45

Multiple Choice

One example of internal controls is

• A) leaving all financial decisions to the sole discretion of the CFO.
• B) having budgets that aren't reconciled against the plan.
• C) allowing a single individual to complete the payment cycle in a payment system.
• D) relying solely on a computerized accounting system to make payments.
• E) the separation of duties for authorizing and making payments.

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Definitions:

Assets

Resources owned by a company that have economic value and can provide future benefits.

Correcting Entry

A journal entry made to amend an error in the financial statements.

Closing Entry

Entries recorded at the conclusion of an accounting period for the purpose of shifting balances from temporary accounts to permanent ones.

Balance Sheet Account

An account displayed on the balance sheet, which includes assets, liabilities, and equity accounts, representing a snapshot of a company's financial position at a specific point in time.