Which of the Following Is Not an Internal Control Activity

question 128

Multiple Choice

Which of the following is not an internal control activity for cash?

• A) Limit the number of employees who have access to cash.
• B) Recordkeeping and physical custody of cash should be performed by the same person.
• C) Record and deposit all cash receipts promptly.
• D) Banking facilities should be used as much as possible.

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Definitions:

Acquisition Costs

Expenses associated with acquiring new assets or investments, including legal fees, consulting fees, administrative costs, and other related expenses.

Property, Plant, Equipment

Long-term tangible assets owned by a business for use in the production or supply of goods and services, also known as fixed assets.

Speculation

The act of trading in an asset or engaging in a financial transaction that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain.

Investments

Assets purchased with the expectation that they will generate income in the future or appreciate and be sold at a higher price.