If a Firm Has Excess Capacity When Calculating AFN (Additional

question 24

Multiple Choice

If a firm has excess capacity when calculating AFN (Additional Funds Needed) , A* will most likely equal which of the following?

• A) Total Assets
• B) Current Assets
• C) Fixed Assets
• D) Lumpy Assets

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Definitions:

Internal Control

Actions and protocols set up by an organization to safeguard the reliability of its financial and accounting data, foster responsibility, and mitigate fraudulent activities.

Bank Reconciliations

The process of comparing and matching the balance of an accounting record (ledger) with the corresponding bank statement, identifying and rectifying any discrepancies.

Cash Account

A type of financial account that records cash transactions, including the receipt and spending of cash.

Check Register

A record, often part of a ledger or accounting software, used to track checks issued, deposits, and current account balances.