Control of Cash: Definition & Methods


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question 1 of 3

A way to monitor a company's credit, collections, cash allocation and disbursement policies as well as its invoicing function is called which of the following?

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1. Which of the following is an example of a cash equivalent?


A company has the following information:

$10,000 in the bank; $25,000 in 90 day CDs; $15,000 in 1 year bonds; $5,000 in money orders; $30,000 in real estate

How much cash and cash equivalents does the company have on-hand?

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About This Quiz & Worksheet

Companies use various methods to control cash, and this quiz/worksheet will help you assess your understanding of them as well as related financial concerns.

Quiz & Worksheet Goals

In these assessments you'll be tested on the methods, functions, and definitions of:

  • Internal controls
  • Cash
  • Cash equivalents

Skills Practiced

This quiz and worksheet allows students to test the following skills:

  • Defining key concepts - ensure that you can accurately define important terms, such as cash control
  • Information recall - access the knowledge you've gained regarding the role of internal controls in relation to cash control
  • Making connections - use understanding of the concept of cash control as it applies to different aspects of company finance

Additional Learning

To learn more about cash control, review the accompanying lesson Control of Cash: Definition & Methods. This lesson covers the following objectives:

  • Define cash control
  • Define cash and cash equivalents
  • Define liquidity
  • Define internal controls
  • Understand how internal control can help control cash