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:

Consolidated Portfolio

A comprehensive account of the combined assets, liabilities, and investment holdings of a parent company and its subsidiaries.

Controlling Interest

Controlling interest is an ownership interest in a corporation that gives the shareholder sufficient voting power to influence or direct the company's management and policies.

Common Stock

Equity ownership in a corporation, representing a claim on its earnings and assets, and conferring voting rights in certain corporate decisions.

Cost Method

This accounting approach involves recording an investment at its original cost without adjusting for changes in market value.