Which of the Following Is NOT an Internal Control Over

question 188

Multiple Choice

Which of the following is NOT an internal control over the petty cash fund?

• A) Petty cash tickets are sequentially numbered.
• B) A specific amount of cash is designated to be kept in the petty cash fund.
• C) Petty cash tickets serve as the authorization voucher and explanation.
• D) Two custodians should be assigned responsibility for the petty cash fund.

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Definitions:

Inelastic Demand

A market situation where the demand for a product does not significantly change in response to price changes.

Inelastic Supply

A scenario in which the amount of a product or service provided is not significantly affected by variations in its price.

Luxury Tax

A tax imposed on expensive goods which are considered non-essential, aimed at discouraging their purchase or generating government revenue from luxury items.

Elastic Demand

A condition in which the quantity demanded of a good or service greatly changes in response to changes in its price.