The Realisation of Assets Is Accounted for in a Company's

question 12

Multiple Choice

The realisation of assets is accounted for in a company's records by using which of the following ledger accounts?

• A)liquidation;
• B)contributories reserve;
• C)gain on sale;
• D)consideration on sale.

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Definitions:

Internal Control Problems

Issues or weaknesses in a business's processes that can lead to inaccurate financial reporting, fraud, or operational inefficiency.

Segregation Of Duties

A fundamental control principle that ensures critical tasks are divided among different individuals to prevent fraud and errors.

Physical Controls

Security measures implemented to safeguard tangible assets, such as locks, surveillance cameras, and secure storage facilities.

Documentation Procedures

The processes used for documenting a company's financial transactions, activities, and controls to ensure accuracy and reliability of financial records.