Chapter 07 Cash and Receivables
True / False Questions
Cash equivalents would include investments in marketable equity securities as long
as management intends to sell the securities in the next three months.
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Difficulty: 1 Easy
Learning Objective: 07-01 Define what is meant by internal control and describe some key elements of an
internal control system for cash receipts and disbursements.
Topic: Internal Control
From a financial accounting perspective, the main purposes of a system of internal
control are to improve the accuracy and reliability of accounting information and to