Final answer:
The statement is false; maintaining internal control over financial assets requires segregating responsibilities. Certificates for securities should be held securely, often with third-party involvement, and not just by the treasurer in a company safe.
Step-by-step explanation:
The statement that good internal control over financial investments requires that the treasurer obtain certificates for all securities and keep them in a company safe is false. Good internal control over financial assets, such as certificates of deposit (CDs), involves segregating duties between individuals who authorize, record, and maintain custody of the financial assets to reduce the risk of errors or fraud. While obtaining certificates for securities is important, it is equally crucial that these certificates are not kept by the treasurer alone, but rather in a secured location, often with a third party or within a secured division in the company that is distinct from the person responsible for recording the transactions related to those securities.
A certificate of deposit is an example of a financial asset, which represents a loan made to a bank, government, or corporation and specifies the loan's amount, interest rate, and due date. While maintaining physical certificates was more common in the past, many securities are now held in electronic form, and the internal controls must adapt to secure these digital assets effectively.