1. Internal controls are a set of procedures adopted by an organization primarily to check frauds and errors and increase operational efficiency.
Consider the aspects of internal control and respond to the following:
List ten internal controls that an organization should have over the collection of accounts receivable.
2. Liquidity ratios determine an organization's ability to meet its short-term obligations. Some examples of liquidity ratios are current ratio, acid-test ratio, and days' sales in average receivables.
Consider the various liquidity ratios and respond to the following:
Discuss the importance of liquidity ratios in short-term financial decision making.