An Example of Good Internal Control Over Cash Is to Have

question 29

True/False

An example of good internal control over cash is to have the person responsible for physically handling all cash perform the bank statement reconciliations.

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Definitions:

Times Interest Earned

A financial metric indicating how well a company can meet its interest obligations from earnings before interest and taxes.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Interest Expense

Over a span of time, the monetary burden borne by an entity due to borrowed capital.

Earning Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.