For a Strong Internal Control System Over Cash, It Is

question 27

True/False

For a strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.

---

Definitions:

Cash Ratio

A financial metric assessing a firm's capability to meet its current obligations using its available cash and near-cash assets.

Cash on Hand

The amount of cash a company or individual has accessible for immediate use, which might be in the form of currency or liquid assets.

Current Assets

Short-term assets including cash, inventory, and receivables that are anticipated to be used or liquidated within one business cycle.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.