A Proof of Cash Is Effective at Identifying Which of the Following

question 36

Multiple Choice

A proof of cash is effective at identifying which of the following misstatements?

• A) checks written for an improper amount
• B) checks issued to invalid vendors
• C) fraudulent checks
• D) checks recorded in the books for an amount different from that on the check

---

Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports.

Excise Tax

A tax imposed on specific goods, services, and activities, such as gasoline, tobacco, and alcohol, often used to discourage their use and generate revenue.

Personal Income Tax

Tax imposed on individuals based on their income, including wages, salaries, and investment income.

Trade Deficit

A condition in which a nation's expenditures on imported goods and services surpass its income from exports, leading to a trade deficit.