_____ Is an Indicator of the Business's Ability to Manage

question 86

Multiple Choice

_____ is an indicator of the business's ability to manage cash flows so that the company has the fiscal ability to respond appropriately if an unexpected opportunity or problem arises.

• A) Liquidity
• B) Financial flexibility
• C) Absorbability
• D) Equitability

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Definitions:

Internal Control Principles

Guidelines that govern the design and implementation of systems and procedures to ensure asset protection, data accuracy, and operational efficiency.

Possible Errors

Mistakes or inaccuracies that might occur in the recording or reporting of financial transactions.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement.

Cash Balance

The amount of cash that a company, individual, or account has available at any given point in time.