Which of the Following Is a True Statement

question 91

Multiple Choice

Which of the following is a true statement?

• A) Risky investments may produce large losses.
• B) Risky investments will not produce large gains.
• C) The coefficient of variation is not a risk measure.
• D) All risky investments have a high probability of succeeding.

Recognize the purposes and components of a voucher system in the control of cash payments.

Understand the function and recording of petty cash transactions including the establishment and replenishment of petty cash funds.

Identify internal control procedures for managing cash receipts and disbursements.

Analyze the role of cash management in business operations, including bank reconciliations and the handling of cash overages and shortages.

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Definitions:

Negligence

The failure to exercise a level of care that a reasonably prudent person would in similar circumstances, leading to unintended harm or damage.

Proximate Cause

A legal term referring to an event sufficiently related to an injury that the law considers the event to be the cause of that injury.

Breached Duty

The failure to fulfill a legal or ethical obligation, often leading to liability.

Natural Consequences

Outcomes that happen as a result of behavior that are not planned or controlled by anyone.