Which One of the Following Statements Is True

question 136

Multiple Choice

Which one of the following statements is true?

• A) Good cash management practices dictate that a company should maintain as large a balance as possible in its cash account.
• B) Sound internal control practice dictates that disbursements should be made by check.
• C) The person handling the cash should also prepare the bank reconciliation.
• D) Petty cash can be substituted for a checking account to expedite the payment of all disbursements.

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Definitions:

Burden of Proof

The obligation to present evidence to support one's claim or defense in a legal dispute, determining which party must prove the truth of their assertions to achieve a favorable outcome.

Due Diligence Meeting

A meeting conducted to carefully review and investigate a potential investment, business deal, or partnership to ensure all facts are known before proceeding.

Misstatements

False or inaccurate statements or entries, often referring to errors or inaccuracies in financial documents or reporting.

Registration Statement

A set of documents filed with securities regulatory bodies detailing information about a company's financial situation and the securities it wishes to issue.