For Strong Internal Control System Over Cash, It Is Important

question 101

True/False

For strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.

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Definitions:

Trading Securities

Financial securities that a company holds primarily for the purpose of trading them in the short term for profit from their price changes.

Passive Investment

An investment strategy involving minimal buying and selling actions, focusing instead on long-term holding and typically relying on market-wide growth.

Voting Shares

Shares that give the shareholder the right to vote on company matters.

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures.