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.

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Common Stock

Certificates issued by a corporation to investors as proof of their ownership rights; an account representing the ownership rights of investors in a corporation; a class of stock issued by a corporation that bears no preference rights.

Market Price

The amount at which an asset or service could be bought or sold in a current transaction between willing parties.

Management's Discussion

A section of a company’s annual report where management presents an analysis of the company’s performance, future prospects, and financial health.