Which of the Following Is not an Internal Control Activity

question 105

Multiple Choice

Which of the following is not an internal control activity for cash?

• A)The number of persons who have access to cash should be limited.
• B)The functions of record keeping and maintaining custody of cash should be combined.
• C)Surprise audits of cash on hand should be made occasionally.
• D)All cash receipts should be recorded promptly.

---

Definitions:

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods once a year.

Interest

The fee or rent that lenders charge for the use of their money.

Third Payment

The third installment of a payment series as agreed upon in a financial transaction or repayment plan.

Monthly Payments

Payments that are required to be made every month, often used in the context of loans, mortgages, or subscription services.