Which of the Following Is the Most Basic Internal Control

question 71

Multiple Choice

Which of the following is the most basic internal control for cash?

• A)Keeping money in a bank account
• B)Counting cash receipts twice
• C)Internal audit of cash procedures
• D)Checking for counterfeit bills

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Definitions:

Modified Approach

An alternative accounting method allowing certain assets to be reported at historical cost rather than being continuously adjusted for market valuation.

Infrastructure Assets

Long-term physical assets that are foundational for providing public services, such as roads, bridges, water systems, and utilities.

Capitalizes

The process of recording an expenditure as an asset, rather than an expense, thus spreading the cost over the useful life of the asset.

Statement of Activities

A financial report primarily used by non-profit organizations, detailing revenues earned and expenses incurred over a specific period.