Internal Controls That Address Liquidity Risk Include

question 48

Multiple Choice

Internal controls that address liquidity risk include:

• A)Sales and cash collections budgets.
• B)Aggressive collection policies.
• C)Both sales and cash collections budgets and aggressive collection policies.
• D)Neither sales and cash collections budgets nor aggressive collection policies.

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Definitions:

Opportunity

A chance or set of circumstances that makes it possible to do something.

Programmed Decision

Decisions made in response to routine, predictable situations through the use of established procedures or rules.

Local Electronics Store

A retail outlet specializing in the sale of electronic devices and related accessories to consumers.

Local Supplier

A business that provides goods or services to another company within the same geographic area, often contributing to the local economy.