An Effective System of Internal Control Is Critical to Protecting

question 147

Essay

An effective system of internal control is critical to protecting a company's investment in three of its major assets: cash,accounts receivable,and inventory.For each asset,describe how a company might protect that asset.

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Definitions:

Neoclassical Economics

A framework for understanding economics that focuses on the determination of goods, outputs, and income distributions through supply and demand mediated through prices.

Behavioral Economics

A field of study that applies psychological insights into human behavior to explain economic decision-making.

Behavioral Economists

Economists who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Temptation

The desire to do something, often something wrong or unwise, driven by impulse or short-term gratification.