Which of the Following Is not an Internal Control Activity

question 50

Multiple Choice

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

• A)All payments should be made with currency, not checks.
• B)Banking facilities should be used as much as possible.
• C)The amount of cash on hand should be kept to a minimum.
• D)Employees who have access to cash should be bonded.

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Definitions:

Plant Assets

Long-term tangible assets that are used in the operation of a business and are not intended for resale.

Depreciation Expense

Apportioning a physical asset’s cost over its estimated useful life.

Straight-Line Method

The straight-line method is a technique of allocating an asset's cost evenly throughout its useful life, commonly used for depreciation and amortization calculations.

Salvage Value

The approximated market price of an asset upon completing its useful life.