Which Statement About Cash Is Not True

question 119

Multiple Choice

Which statement about cash is not true?

• A) A main goal of an internal control system is to protect assets other than cash.
• B) Cash is the one asset that is readily convertible into any other type of asset.
• C) Cash is easily concealed and transported and is highly desired.
• D) Cash is the asset most susceptible to fraudulent activities.

---

Definitions:

Dividends

Payments made by a corporation to its shareholders from the company's profits or reserves.

Corporate Penalty Taxation

The imposition of taxes on corporations for violating laws or regulations, distinct from regular taxation on profits.

Closely Held Corporation

A business corporation that is owned by a small number of shareholders; its shares are not publicly traded.

Limited Liability

is a legal structure where the owners' personal liability is restricted to the amount they invested in the business, protecting personal assets from business debts and obligations.