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

Financial controls are designed to help managers to:

Increase the company's market share directly

Set employee salaries and benefits

Develop new products and services

Safeguard assets and ensure the accuracy of financial records

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Verified step by step guidance

Understand the purpose of financial controls: Financial controls are mechanisms and procedures implemented by a company to ensure the proper management of its financial resources. They are not directly aimed at increasing market share, setting salaries, or developing products, but rather at safeguarding assets and ensuring accurate financial reporting.

Clarify the role of financial controls: Financial controls help prevent fraud, theft, and errors in financial transactions. They ensure compliance with laws and regulations and provide reliable financial information for decision-making.

Differentiate financial controls from other managerial functions: While financial controls focus on protecting assets and maintaining accurate records, other managerial functions like marketing strategies, HR policies, and R&D initiatives address market share, employee benefits, and product development.

Relate financial controls to safeguarding assets: Safeguarding assets involves implementing measures such as internal audits, segregation of duties, and physical security to protect company resources from misuse or loss.

Relate financial controls to ensuring accuracy of financial records: Ensuring accuracy involves maintaining proper documentation, reconciling accounts, and adhering to accounting standards to produce reliable financial statements.