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

Which of the following is NOT an example of a common control activity within an organization's internal control system?

Segregation of duties

Physical controls over assets

Monitoring of controls

Authorization of transactions

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Verified step by step guidance

Understand the concept of internal control activities: Internal control activities are policies and procedures implemented by an organization to ensure the reliability of financial reporting, compliance with laws and regulations, and the safeguarding of assets.

Review examples of common control activities: Common control activities include segregation of duties, physical controls over assets, and authorization of transactions. These are designed to prevent errors and fraud.

Analyze the provided options: Segregation of duties involves dividing responsibilities among different individuals to reduce the risk of error or fraud. Physical controls over assets involve securing physical assets, such as locks or security systems. Authorization of transactions ensures that only approved transactions are executed.

Understand the concept of monitoring of controls: Monitoring of controls is a separate component of an internal control system, focused on assessing the effectiveness of control activities over time. It is not classified as a control activity itself but rather as a process to evaluate the system.

Identify the correct answer: Based on the definitions and examples, monitoring of controls is NOT an example of a common control activity within an organization's internal control system.