Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

Financial Accounting

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

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Multiple Choice

Banks provide important controls surrounding a company's cash. These include which of the following?

Providing bank statements for reconciliation

Approving company budgets

Authorizing employee expense reimbursements

Requiring dual signatures on all company checks

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Verified step by step guidance

Understand the role of banks in controlling a company's cash. Banks are external entities that provide services to help companies manage and safeguard their cash effectively.

Review the options provided in the problem. The options include: (1) Providing bank statements for reconciliation, (2) Approving company budgets, (3) Authorizing employee expense reimbursements, and (4) Requiring dual signatures on all company checks.

Analyze each option to determine whether it aligns with the typical functions of a bank. For example, banks commonly provide bank statements for reconciliation, which is a key control mechanism for verifying cash transactions.

Consider the other options. Approving company budgets and authorizing employee expense reimbursements are internal company functions, not typically performed by banks. Requiring dual signatures on checks is a company policy that banks may enforce but do not directly require.

Conclude that the correct answer is the option that reflects a service banks provide to help companies control their cash, such as providing bank statements for reconciliation.