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

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

Negative events which an organization or company has no control over are:

Internal controls

Opportunity risks

External risks

Fraudulent activities

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Verified step by step guidance

Understand the concept of 'external risks': These are negative events or circumstances that occur outside the organization and are beyond its control. Examples include natural disasters, economic downturns, or changes in government regulations.

Differentiate 'external risks' from other types of risks: Internal controls are mechanisms within the organization to safeguard assets and ensure accurate financial reporting. Opportunity risks involve potential losses or missed gains due to strategic decisions. Fraudulent activities are intentional acts of deception within or outside the organization.

Recognize that external risks are not influenced by the organization's actions or decisions, making them distinct from internal risks or risks related to opportunities.

Review examples of external risks to solidify understanding: For instance, a company facing supply chain disruptions due to geopolitical conflicts or experiencing financial losses due to a sudden change in currency exchange rates.

Apply this understanding to similar scenarios: When analyzing risks in financial accounting, categorize them appropriately to ensure accurate risk assessment and management strategies.