Which of the Following Is not a Good Control Activity

question 48

Multiple Choice

Which of the following is not a good control activity over cash?

• A)Payments to creditors should be made in cash.
• B)There should be limited access to cash.
• C)The amount of cash on hand should be kept at a minimum.
• D)Cash should be deposited daily.

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Definitions:

Price Elasticity

A measure of how the quantity demanded of a good is affected by a change in its price.

Inelastic

A characteristic of demand when consumers' purchase quantities are not significantly affected by changes in the price of a good or service.

Good Substitutes

Products or services that can be used in place of one another, satisfying the same needs or wants of the consumer.

Elastic

Describes demand or supply that is highly sensitive to changes in price; a small change in price leads to a large change in the quantity demanded or supplied.