Author Question: Tools used in a financial statement analysis should generally include common-size financial ... (Read 267 times)

dmcintosh · **on:** Jul 6, 2018

Tools used in a financial statement analysis should generally include common-size financial statements, key financial ratios, trend analysis, structural analysis, and comparison with industry competitors.

Indicate whether the statement is true or false

Question 2

Explain why internal control is an important aspect of an accounting system, providing at least two specific examples that would be in the policies and procedures of internal control.

nickk12214 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

T

Answer to Question 2

A very important aspect of any financial accounting system, either for an individual or for a business enterprise, is the accurate and efficient management of assets. The handling of assets in a manner that will prevent employees from stealing cash funds is known as internal control. Internal control is the system of policies and procedures that is designed to protect assets against fraud and waste, provide for accurate accounting data, promote efficient operation, and encourage adherence to management polices.