Which of the Following Is an Accurate Statement Regarding Cash

question 142

Multiple Choice

Which of the following is an accurate statement regarding cash?

• A) The amount of cash flowing into and out of the cash account is often larger than that for any other account in the financial statements.
• B) The susceptibility of cash to embezzlement is greater than that for other types of assets.
• C) Auditors must verify whether recorded cash in the general ledger correctly reflects all cash transactions that took place during the year.
• D) All of the above are accurate statements.

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Definitions:

Loanable Funds

The money available for borrowing in the financial market, influenced by savings, borrowing, and interest rates.

Time Preference

The economic theory that individuals prefer to receive goods or services sooner rather than later, all else being equal.

Federal Reserve

The central bank of the United States, responsible for monetary policy, regulation of financial institutions, and ensuring financial system stability.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.