Which Is Not an Internal Control Procedure for Petty Cash

question 64

Multiple Choice

Which is not an internal control procedure for petty cash?

• A) The signatures of both the fund custodian and the person receiving the payment are required on the receipt.
• B) Any supporting documents that are available should be attached to the petty cash receipt.
• C) The custodian destroys the receipts in the petty cash box weekly.
• D) Management should make surprise counts periodically to determine whether the fund is being maintained correctly.

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Definitions:

Gross Profit Percentage

A financial metric that shows the proportion of profit a company makes after subtracting the cost of goods sold from its total revenue.

Net Sales Revenue

The amount of revenue generated from sales after deducting returns, allowances for damaged goods, and discounts.

Earnings Per Share

A financial ratio that measures the amount of a company's net income allocated to each outstanding share of common stock.

Treasury Stock

A corporation’s own stock that has been repurchased. Shares held as treasury stock are considered issued shares but not outstanding shares.