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.

---

Definitions:

Liquidation

The process of converting assets into cash, often associated with dissolving a business and distributing its assets to claimants.

Homestead Cap

The homestead cap is a legal provision that limits the annual increase in valuation of a homestead property for property tax purposes.

Aggregate Interest

The total amount of interest payable or receivable over the life of a loan or investment.

Convicted

A legal finding that someone is guilty of a crime after a trial or through a guilty plea.