Which of the Following Is the Basic Internal Control Measure

question 178

Multiple Choice

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

• A)keeping money in a bank account
• B)checking for counterfeit bills
• C)counting cash receipts twice
• D)internal audit of cash procedures

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Definitions:

Opportunity Cost

The cost of foregoing the next most desirable choice when a decision is made.

Out-of-pocket Cost

Direct payments made by individuals for goods or services, not reimbursed by insurance or other means.

Marginal Cost

Marginal Cost is the cost incurred by producing one more unit of a product or service.

Marginal Cost

The additional cost incurred in the production of one more unit of a good or service, a critical concept in economic theory related to the allocation of resources.