Volvo Group, the Swedish auto company, had 2011 sales of SEK310 billion, where SEK stands for Swedish kroner Among the SEK353 billion in total assets on its balance sheet were cash and cash equivalents of SEK30 billion The company has many internal controls related to cash A new employee in the int...

Although Volvos cash balance on a particular date is less than 9 of total assets the ...

Volvo Group, the Swedish auto company, had 2011 sales of SEK310 billion, where SEK stands for Swedish

Question:

Volvo Group, the Swedish auto company, had 2011 sales of SEK310 billion, where SEK stands for Swedish kroner. Among the SEK353 billion in total assets on its were cash and cash equivalents of SEK30 billion. The company has many internal controls related to cash.
A new employee in the internal audit department asked why so much effort was put into monitoring cash when it was less than 9% of total assets. Prepare an answer for the new employee.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...