What is an Internal Control System?
A system that managers use to monitor and control business activities. (More for large companies) It
consists of the policies and procedures managers use to:
1. Protect Assets
2. Ensure reliable accounting
3. Promote ef
Liquidity (and efficiency)
Refers to the availability of resources to meet short-term cash requirements. (Efficiency refers to
how productive a company is in using its assets). Liquidity is often assessed by the current ratio.
Current Ratio= Current asset
What is the Time Period oAssumption?
presumes that an organization's activities can be divided
into specific time periods such as a month, a
three-month quarter, a six-month interval, or a year.
What is an interim period?
Monthly and quarterly time period
managers of small businesses often:
control the entire operation
internal control system consists of the policies and
procedures managers use to:
ensure reliable accounting
promote efficient operations
urge adherence to company policies
Total value of inventory
Total number of red shoes in inventory
Average selling price for red shoes
Number of red shoe inventory items
Average Selling Price
Average Price of Basketball I
Hernandez, Reissner, and Tyler
Gary J. Reissner
Grand Canyon University Professor Verrone
27 May 2016
A montage is a wonderful way to tell a story using absolutely no verba