Which of the Following Is Not an Internal Control Activity

question 90

Multiple Choice

Which of the following is not an internal control activity for cash?

• A)Unannounced audits of cash on hand should be made occasionally.
• B)The number of persons who have access to cash should be limited.
• C)The functions of recordkeeping and keeping custody of cash should be combined.
• D)All cash receipts should be recorded promptly.

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Definitions:

Breach of Contract

A situation where one or more parties involved in a contract fail to fulfil their legal obligations as outlined in that contract.

Writing Requirement

A legal stipulation that certain kinds of contracts must be in writing to be enforceable.

Purchase Price

The amount of money that is required to buy something.

Incorporation

The process of legally declaring a corporate entity to be separate from its owners, thereby providing limited liability and other benefits.