Internal controls that address liquidity risk include:
A)Sales and cash collections budgets.
B)Aggressive collection policies.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

Sales and cash collections budgets can help to ensure that there is adequate cash on hand to meet obligations, while aggressive collection policies can help to ensure that cash is received in a timely manner. Both of these measures can help to address liquidity risk.

Internal Controls That Address Liquidity Risk Include