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

Principles of Control Activities

Financial Accounting

6. Internal Controls and Reporting Cash

Principles of Control Activities

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Multiple Choice

Which of the following is an advantage of decentralization in an organization's control activities?

Reduced need for management training at lower levels

Greater central control over all operations

Faster decision-making at lower levels of management

Increased uniformity in company-wide policies

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Verified step by step guidance

Understand the concept of decentralization: Decentralization refers to the delegation of decision-making authority to lower levels of management within an organization. It allows managers at various levels to make decisions without requiring approval from higher levels.

Analyze the advantages of decentralization: Decentralization can lead to faster decision-making at lower levels because managers closer to the operations have the authority to act quickly without waiting for instructions from the central authority.

Compare the options provided: Evaluate each option against the characteristics of decentralization. For example, reduced need for management training at lower levels is not an advantage of decentralization, as decentralization often requires well-trained managers at lower levels to make effective decisions.

Focus on the correct answer: Faster decision-making at lower levels of management aligns with the benefits of decentralization, as it empowers managers to respond promptly to operational needs and challenges.

Conclude the analysis: Decentralization enhances responsiveness and efficiency at lower levels of management, making it a valuable organizational strategy for improving decision-making speed and adaptability.