The Least Crucial Element of Internal Control Over Cash Is

question 29

Multiple Choice

The least crucial element of internal control over cash is

• A) Separation of cash record-keeping from custody of cash.
• B) Preparation of the monthly bank reconciliation.
• C) Batch processing of checks.
• D) Separation of cash receipts from cash disbursements.

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Definitions:

Residual Value

Residual Value is the estimated value that an asset will realize upon its sale at the end of its useful life, crucial for calculating depreciation for assets.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life, used in calculating depreciation expenses.

Maintenance Costs

Expenses incurred to keep property, equipment, or software operational and in good working condition.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.