Question : Essay Questions 163. Define what it meant by internal control. : 1412700

163.

Define what it is meant by internal control. 
 
 

164.

Describe some key elements of an internal control system for cash. 
 
 

165.

Cash is the most liquid of all assets but is not always reported under current assets. Explain this statement. 
 
 

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166.

Although the net method is theoretically more sound, most companies use the gross method of accounting for cash discounts related to sales on account. Explain this statement. 
 
 

167.

Briefly explain the accounting treatment for estimated sales returns at the end of an accounting period for which accounts receivable remain outstanding. 
 
 

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