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

Which of the following is NOT an advantage of budgeting?

Budgets eliminate the risk of fraud within an organization.

Budgets assist in planning for future operations.

Budgets provide a basis for performance evaluation.

Budgets help coordinate activities across departments.

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Verified step by step guidance

Understand the concept of budgeting: Budgeting is a financial planning tool used by organizations to allocate resources, set goals, and monitor performance. It helps in planning, coordination, and evaluation but does not directly eliminate risks like fraud.

Analyze the options provided: Each option represents a potential advantage of budgeting. Carefully evaluate whether each statement aligns with the purpose and benefits of budgeting.

Option 1: 'Budgets eliminate the risk of fraud within an organization' - Consider whether budgeting inherently prevents fraud. While budgets can help monitor financial activities, they do not eliminate fraud, as fraud prevention requires additional controls and policies.

Option 2: 'Budgets assist in planning for future operations' - Recognize that budgeting is a key tool for planning future operations, as it helps organizations forecast revenues, expenses, and resource needs.

Option 3 and 4: 'Budgets provide a basis for performance evaluation' and 'Budgets help coordinate activities across departments' - Understand that these are valid advantages of budgeting, as budgets set benchmarks for performance and ensure alignment across departments.