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:

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life.

Bond Investment

An investment in debt securities issued by corporations or governments to finance their operations.

Other Comprehensive Income

Other Comprehensive Income represents revenues, expenses, gains, and losses not included in net income, and reflects changes in equity during a period except those resulting from investments by and distributions to owners.