AOS1 establishing financial control systems

Question 1

financial control systems definition

Answer 1

• the processes, methods, and tools that allow a business to accurately monitor and manage its financial performance.

Question 2

financial control systems

Answer 2

1. budgeting
2. cash-flow management
3. control of accounts receivable
4. inventory control
   5.auditing

Question 3

budgeting

Answer 3

• estimating the business’ financial performance for a given period in the future

Question 4

cash flow management

Answer 4

• the money being transferred into and going out of the business.

Question 5

inventory control

Answer 5

• ensure that costs are minimised and that the business has access to the right amount of materials when required

Question 6

auditing

Answer 6

• process of testing and evaluating a business’ accounting processes and internal controls.