Why Is It a Matter of Good Internal Control to Deposit

question 3

Multiple Choice

Why is it a matter of good internal control to deposit all cash receipts daily and make all payments for goods and services by check?

• A)When no paper documents are required,there is increased convenience and lower cost
• B)These actions control the access to cash and create an independent record of all cash activities.
• C)These procedures result in a more extensive testing of a company's records.
• D)The Sarbanes-Oxley Act requires these steps be taken by each publicly traded company.
• E)These procedures allow management to determine if projected cash receipts and disbursements came in over or under budgeted amounts.

Analyze annuities, their future values, and the interest rates associated with them.

Determine the implications of varying payment frequencies (monthly, quarterly, semi-annually, and annually) on loans and investments.

Understand how to assess and compare different payment streams and their impacts on the value of money over time.

Grasp the concept of inflation and its effect on the economy and individual financial decisions.