Management's Philosophy and Operating Style Have to Do with How

question 16

True/False

Management's philosophy and operating style have to do with how the business is operated and are not part of the internal control environment.

---

Definitions:

Cash Flow

The net amount of cash and cash equivalents being transferred into and out of a business.

Dividends Payable

A liability recorded on the company's balance sheet for dividends that have been declared by the board of directors but have not yet been paid to shareholders.

Operating Activities

Transactions and events that relate to the primary operations of the company, such as sales and services.

Acquisition Of Equipment

The process of obtaining capital or operational assets, like machinery or tools, necessary for conducting business.