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:

Annual Profits

The total earnings of a business or company over the course of a year after all expenses have been deducted.

Complete Refund

The total return of money paid for a product or service, typically due to dissatisfaction or a defect.

External-operational Communication

The exchange of information between an organization and external parties, such as customers or vendors, that relates to its day-to-day operations.

Company Merger

The process by which two or more companies combine to form a single entity, often aiming to increase market share, reduce costs, or expand into new markets.