In a Firm Having Both a Treasurer and a Controller,which

question 90

Multiple Choice

In a firm having both a treasurer and a controller,which of the following would most likely be handled by the controller?

• A) Internal auditing
• B) Credit management
• C) Banking relationships
• D) Insurance

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.

Mismatching Problems

Issues that arise when expenses are recognized in a different period than the revenues they help to generate, potentially distorting financial statements.

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded when cash is received or paid, rather than when they are earned or incurred.