What Are Two Important Internal Control Procedures That Companies Should

question 64

Essay

What are two important internal control procedures that companies should implement to prevent misstatements in owners' equity when a company maintains its own records of stock transactions and outstanding stock?

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Definitions:

Real Exchange Rate

The rate at which two currencies can be exchanged, adjusted for their countries' respective inflation rates, to purchase an equivalent quantity of goods and services.

Foreign Assets

Investments including securities and properties owned by a country or individual in foreign countries.

Quantity Of Dollars

The quantity of dollars refers to the total amount of U.S. currency circulating within the economy, including physical cash and bank deposits.

Loanable Funds Demanded

The total amount of loans that borrowers are willing to take at a given interest rate, over a certain period.