A Person Who Controls or Has Access to an Asset

question 65

Essay

A person who controls or has access to an asset must not keep that asset's accounting records. This describes the internal control principle of _______________________.

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Definitions:

Credit Sales

Transactions in which goods or services are provided to a customer with an agreement to pay at a later date.

Budgeted Sales

The sales numbers a company projects to achieve in a future period, usually part of financial planning and budgeting.

Gross Margin

The difference between the sales revenue and the cost of goods sold, which shows the profitability of a company’s core activities.

Selling

The process of promoting and transferring ownership of goods or services to customers.