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 an example of the 'Control Activities' component among the five components of internal controls?

Communicating policies through staff meetings

Performing regular risk assessments

Requiring dual signatures on checks above $10,000

Establishing a code of conduct for employees

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Verified step by step guidance

Understand the concept of 'Control Activities' within the framework of internal controls. Control Activities are the policies and procedures implemented to ensure that management directives are carried out and risks are mitigated.

Review the examples provided in the problem and identify which one aligns with the definition of 'Control Activities'. Specifically, look for actions that directly enforce or execute control measures.

Analyze the option 'Requiring dual signatures on checks above $10,000'. This is a specific procedure designed to prevent unauthorized transactions and ensure accountability, which is a hallmark of Control Activities.

Compare this option with the other choices provided. For example, 'Communicating policies through staff meetings' and 'Establishing a code of conduct for employees' are more related to the 'Control Environment' component, while 'Performing regular risk assessments' aligns with the 'Risk Assessment' component.

Conclude that 'Requiring dual signatures on checks above $10,000' is the correct example of the 'Control Activities' component, as it directly enforces a control procedure to mitigate financial risks.