Which of the Following Is NOT a Recommended Control for the Petty

question 119

Multiple Choice

Which of the following is NOT a recommended control for the petty cash fund?

• A)Designate a custodian for the petty cash fund.
• B)Document all payments with a written record.
• C)Keep the fund in a safe, locked location.
• D)Ensure all employees have access to the fund.

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Definitions:

Signature Liability

Liability that is attributed because of a party’s signature on an instrument.

Warranty

(1) An assurance, either express or implied, by one party that the other party can rely on its representations of fact. (2) In sales, a binding promise regarding a product in the event that the product does not meet the manufacturer's or seller's promises.

Proper Tender

The act of presenting an exact amount of money in the appropriate form as payment for a debt or obligation.

Endorsers Discharged

Refers to the situation where endorsers (persons who sign documents, typically negotiable instruments, to endorse them) are released from their obligations under the instrument.