Which of the Following Is Characteristic of Internal Control

question 149

Multiple Choice

Which of the following is characteristic of internal control?

• A) Sound internal control practice dictates that disbursements be made by cheque.
• B) Good cash management practice dictates that large cash balances be maintained.
• C) The person handling cash should also prepare the bank reconciliation.
• D) Petty cash can be substituted for a chequing account to expedite the payment of all disbursements.

---

Definitions:

Scientific Method

A systematic approach to research where a problem is identified, relevant data is gathered, a hypothesis is formulated, and then the hypothesis is empirically tested.

Natural Sciences

Branches of science that study the physical world, its phenomena, and processes, including biology, chemistry, physics, and earth sciences.

Nation's Economy

The overarching system of production, consumption, and exchange of goods and services within a country's borders.

Economic Models

Simplified representations of complex economic processes, aimed at forecasting economic outcomes and trends.