Which of the Following Is not an Internal Control Procedure

question 137

Multiple Choice

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

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

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Definitions:

Troubled Debt Restructuring

A process where terms of an existing debt are modified due to the debtor's inability to pay, often resulting in reduced interest rates or extended payment terms.

Creditor Grants Concession

A situation where a creditor agrees to reduce or restructure a debtor's obligation under financial distress conditions, making it easier for the debtor to manage their debt.

Securitization Entity's Credit Rating

A measure of creditworthiness assigned to entities that bundle and sell receivables or other financial assets in the form of securities.

Trouble Debt Restructuring

A process where the terms of a debt are modified due to the borrower's financial difficulties to provide relief.