If Internal Controls Over Cash-Related Transactions Are Operating Effectively, Control

question 93

True/False

If internal controls over cash-related transactions are operating effectively, control risk is increased.

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Definitions:

Accounts Receivable

The amount due to a company from its clients for goods or services that have been dispatched or consumed, but payment has not been received.

Capital

The assets, including money, that a person or organization possesses or has available for specific uses like launching a business or making investments.

Cash

Represents money or any instrument that banks accept for deposit and immediate credit to a company’s account, such as checks or money orders.

Expenses

Costs incurred by a business in the process of earning revenue, such as rent, salaries, and utilities.