Managers Must Control the Operations of Their Business

question 6

Essay

Managers must control the operations of their business. A plan of internal control is designed to help management maintain control of a business and its operations. What are the key elements of a plan of internal control?

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Definitions:

Assets

Assets refer to resources owned by an individual or organization that have economic value and can be converted into cash or used to generate income.

Existing Balance

Refers to the amount currently in an account prior to any new charges, deposits, or withdrawals.

Office Policy

Rules and guidelines established by an organization to regulate procedures and behavior in a workplace.

Balance Due

The amount of money owed to a party that has not yet been paid.