Preparation of a Proof of Cash Would Not Be Useful

question 98

Multiple Choice

Preparation of a proof of cash would not be useful in discovering differences between the actual and reported cash balances if the differences were due to:

• A)deposits in transit.
• B)collections on the company's behalf by the bank which are deposited directly to the company's account.
• C)cash receipts that were not recorded in the relevant accounting records.
• D)service charges.

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Definitions:

Sales Volume

The total quantity of products or services sold by a company within a specific period, often used as a measure of business activity.

CEO Compensation

The payment and benefits package provided to a company's chief executive officer, including salary, bonuses, stock options, and other perks.

Stock Options

A benefit in the form of an option given by the company to an employee to buy stock in the company at a discount or at a stated fixed price.

Executive Perquisites

Additional benefits or privileges offered to executives or senior managers beyond their basic salary, which may include company cars, stock options, or country club memberships.