which-of-the-following-is-not-considered-to-be-part-of-the-internal-control-structure-of-a-company-a

Question

Which of the following is not considered to be part of the internal control structure of a company?
A. Ensure that assets are kept secure.
B. Monitor operations of the organization to ensure maximum efficiency.
C. Publish accurate financial statements on a regular basis.
D. Ensure assets are properly used.

Puneet Prajapati · Accepted Answer

book. It&#x27;s OVI are going to understand the concept of stock market today. Ordered by that. Do you understand? They regulate Lee expects off the same. Okay. Yeah, the first to the market in vintage by us foreign sailors by busy big by. Okay, sell the secure peace. A deep, best possible place. Okay, Gessel, in a general sense, everyone is familiar with the stock market, which is basically a main platform. Who pays fires. Okay. For many types of business ventures, that supposed date is there is a person who is William, who is willing to start his business. But this now short of place. So they issued Eagle. You should put the stock market who raised difference by showing different types off financial instruments. But who gets the stock market? There are only shares which can be issued by the company. Who is who is having short of funds. Okay. No. What is the stock market? It refers to the market. Okay. In which buyers and sellers by physically who by and sell the securities? What type of securities unleash years in stock market? There are delicious and the best possible place. Okay. Know what happens? There is a authority. Also, there are many specks. Little to stock market. Let&#x27;s see, there are insider treaty. What is it? Insider duty? See, uh, there are many big companies that are listed on stock exchanges. Okay, so what happens? Vendor Vendor Rizzo Inherent excess off employees walking in Those corporations who are listed on the stock exchanges manipulate the stock prices on the stock market because of having inherent access to public sensitive information. Okay, that information, which is not required to be disclosed to the public. So there comes insider trading so inside that is used for employee employer off the company whose shares understood on the stock exchange. OK, so an employee who is having access to such sensitive information would likely to be, you know, manipulate the prices on the stock exchange and data they come. Also, buyer and seller protection perfection. There are a lot off intimate trees in mourning. The stock market process, like portfolio manager and mutual fund distributors stalled, broke. Okay, so there are many types of intimately involved in the stock market. Now what happens? Buyers and sellers dealing with such time of intermediaries will not be fooled. Okay, so that is Why the responsible authority? Okay, prepared rules regarding that on So, Captain, there are also revelations. Let it took capital raising. I&#x27;m treating. Okay, So if you have family with the stock market, you will be knowing that they&#x27;re not different. Timings off opening and closing off the market like me have general linings off market and of it, you know, walls. So they are similar timings available in the stock market. Okay. And there are many dives off trading regulations developed by the competent authority. Okay, so we have understood this down, this one and this one all in one. Okay. Relation to with respect, relation to stop. However, the rules regarding these three will only be they&#x27;ve learned by one authority that we know as Securities and Exchange Commission. Okay, because it is the authority which has been designated by government, who would take such decisions and frame the use According Okay, So we have derived. Never solution. OK? And that this and that matches shore. Leave it. Joyce. Be okay. So you can write down sheet crunchy on your books for future difference, however, are incorrect choices. Joy, speed. That&#x27;s all forever. Solution. Thank you.

Puneet Prajapati · Answer

so we will understand the meaning law. Well, we can see the concept off Dimension reporting Antarctica. Okay, so it is the authority which issues financial accounting standards or give within which every entity, every business, entity, every form, every corporation has to function. Okay, these war gets die lives. Okay, so standards, I would guess, guidelines for every form. So that so what is so that investors deception off and these financial were beaten. Okay, so we have concluded out so that that this entity issues those standards which workers guidelines for every form so that it could try to improve the perception about and this financial position for for investors. Okay. Because in Leicester, sever final and complete state in every entity. Because a lesson until investors will invest their investment amount. Okay, so the business could not be commenced. So therefore, such a voter d book the work with the prime objective off strengthening their perception about entreaties. Farage imposition. Okay, so that matches with choice. Okay, choice here. See, it means the correct choices. Choice E which says that statement statement in a option and see option. Both are correct. So Choice E is the correct answer, however, you can try Poor time Britain so far for reference. So the correct solution we ever identified as Choice E. That&#x27;s all.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand that What is the actual meaning off government agents? They very well know that. What is the actual meaning of government? However we&#x27;ve been dealing get up Meaning off into reverse. You win establishment, which has a sole purpose. Who saw the various needs for safety through the collection off because it revenue strong the public info. Yeah. Mexes these energy. Okay, so what? We have guard in our definition. First of all, it has. It is an establishment. Okay, which has a soul but was to serve the various needs off society. Or so we can also deride the meaning that it does not has the government. A government agency does not ask any purpose to only profit. Okay, but how does it solve the needs of the society through the collection? Off big, particularly new from the public. Inform off axis fees. Impolitic. Oh, sorry. It&#x27;s more so I will get. I will give you a better example to understand this definition, however you will you need to write this definition so that you can get the idea that how our example is going. Let&#x27;s use a force. There is a government agency G company. Okay, so what? It does you eggs? It collects the revenue. It collects the taxes, Benedetti on income off every person. Okay. It was in case off a a Mr Lead. So it is g complicity covering backsies. Maybe on income off mystery. Know what, Mr. So what is the response will be articulating the revenues from the public. It has to establish established that sources which wouldn&#x27;t need society needs. Okay, because this very clearly in four days the society needs that. Just understand this infested ship bridge Heidi&#x27;s. Okay, box. The Ming schools that make hospital says head gear. Okay. Has given safe be education. Various, various, this let this list is not exhaustive. Okay? But however, you can get a sense in that part of the basics writing needs. So now what is the sole purpose of this G country collecting Texas from Mr. Okay, I&#x27;m establishing the various sources, which will mean the society needs Okay, So from this, we can we have the right of a solution. So the correct choice for our problem is be okay in B enjoys B. What is the option? ISI, using X performs, who service the needs of this exciting. Okay, So this is the solution for our given problem based on the analysts we have just discussed. Okay, We have just seen you. Will. You can also brought this diagram so that you can get clarity that what is the definition we have created on? First page is saying Okay, but however acting confuse it. And that was it for me. We have a solution as Joyce. Be okay. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

So let&#x27;s understand the meaning of statement of cash flow. Okay, But before that, we will ride down that What type of statement are included in financial statements? Every type of entity, the bear. Financial statements for assessing the financial position as well as other positions of the entity. Okay, now I&#x27;m writing in the order. Okay. So, income statement? Yeah. Is the first statement which is prepared. Okay. Followed by that we have balance sheet. Okay. After that, we have statement of cash flow. Okay, So these three statements, however there are there is one. Also, there is one other statement also, which is prepared as a part of financial statements. But we are not discussing here because, you know, these these statements are the traditional segments which are used to be prepared as part of the patient of fantastic things. So what does the income statement do? Okay, it assesses the profitability. You can write down the notes, which I&#x27;m writing for future references. Okay. However, it is not mandatory. Okay, So the income statement enables the entity to assess the profitability situation of the company. Like like we prepare income statement on a year to year basis like how much profit or loss the company has generated from operating its main activities for which the entity has been established. Okay, so how much profit or loss has been generated from such activities? Okay, to the now, what does the balance you do? Balance sheet indicates the financial position. However, balance sheet is itself, you know, summarized very brief, summarised form of and produce financials. It will not give. It will not give any user the proper readability into summarized into detailed form. Okay, so that is why we use different types of statement to understand the balance sheet properly. Because balance, it is itself for very high level somebody. Okay, so balance sheet enables to enables an entity to understand it. Financial position. Okay, there this is where is the start? Statement of cash flows enables the entity to assess the financial position. That&#x27;s a good thing on a cash basis. Okay, Like the statement of cash flow is prepared to assess the financial position. Or we can say the cash flow position of the entity. Three types of activities are included in statement of cash flow. Okay. First one is operating activities. Operating activities are those for which the business has been established. Let&#x27;s suppose you are in business of construction business by construction houses, infrastructure like that. So operating operating activities will be considered as your construction activities, like whatever type of cash flow will be generated or paid into construction activities will be Yeah, will be considered in operating activities. Okay, any type of cash, but from construction business will be considered an operating activities, then other is investing activities. Okay. Investing activities. Yeah. The third one is financing activities. Okay, so we will understand these freedoms in later subject when we will face much advanced problems related to this casual statement. However, the portion has asked us at which of the following which of the following statement provide the cash flow position of an entity. So out of the out of these three, the last one the statement of cash flow, it provides the cash flow position of an entity. Okay. Like, it enables the entity to understand that how much cash flow is being generated by each of the activity. Okay. And how much of the cash is being spent on each of the activity? Okay, so then we will get to summarize form of cash flow position Okay of entity itself. Okay, so the correct choice solve our problem. Yes. See? Okay, you can go down sheet number one and number two as part of your notes for for future reference. However, that&#x27;s all for the solution. That is Choice E. Thank you.

Puneet Prajapati · Answer

Yes. Lets understand the current solution. Let&#x27;s suppose we have three come, please. X company, why don&#x27;t we? So it&#x27;s is in dealing, lest see restaurant services. Okay, X company is doing it. That&#x27;s great. It is why companies dealing in construction business. Okay, Where is that Zach company is doing? It can be done with this. Of course. We can also take it as like this. Let&#x27;s suppose if there are many, many companies in a particular industry in a particular restaurants. So Mrs Industry, Okay. And there are many commission construction business. However, begin also understand that each of this company will have a different purpose off operating that business. Okay, although they will all contribute, contribute to the society, contribute continue to the society. Like conducting campaigns for for a medical check up. Oh, opening three. I s Jacobs and various campaigns. Okay, so they will contribute to the society. All of the three companies based on different objectives. Okay, so this that will be seen. Each of these completes will need accounting information to get you get the idea that the business is heading right? No. Okay, so all of these organizations believe same accounting information okay? No. What does each of these but also have inflow in fluid outflow of resources? Okay, influence. Our flow of resources for each of these companies, like to support in floor resources is getting raw materials for assurance services give vegetables, floors and, uh, other kinds of products give from which they will process the finalized foods and beverages you supply to their customers in case of construction. Now, what will be also resources, foods and beverages. Okay, so these titles outflow and inflow of the sources will be common to each of these organizations. Okay, However, these companies Vince year different, more different motives. Who will bring the business like they all have the different different. So specifics sick. Okay, like exit leading industry in. So this is by completing construction business. That company is the Lindon chemical business. However, these objectives will be say, first, contributors contribute to society accounting information. Hey, in fluid outflow, obvious sources. However, all of these companies were dealing different types of businesses, or we can see which will never share a common purpose with me. The same bilious. So from this analyst is we can conclude so the potion has asked us that which of the following is not true. Okay, so our correct choice for problem six is by there. So because every organization will be serving with a different purpose. Okay, so that&#x27;s all for the solution. Please make note off this example so that you will get a better clarity. That about about the idea we have just discussed. Okay, So that sort for disillusion. Thank you.

Problem

There are several elements to internal controls. …

Problem 4 Easy Difficulty

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting