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:

Survival Instinct

The innate or natural tendency to act or respond in a way that ensures survival and protection of oneself.

Social Egalitarians

Advocates for social equality, striving for equal rights and opportunities among all people within a society.

Goods And Services

The tangible products (goods) and intangible items (services) that satisfy human wants or needs and are offered in the marketplace.

Society's Wealth

The collective value of all economic resources and assets owned by the individuals and institutions within a society.