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.

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Definitions:

England

A country that is part of the United Kingdom, known for its rich history, cultural contributions, and as the birthplace of the English language.

Egypt

A country in North Africa known for its ancient civilization and monumental architecture, including pyramids and the Great Sphinx.

Syria

A country in Western Asia, known for its ancient civilizations, rich cultural heritage, and recent conflicts.

Dura-Europos

An ancient city on the Euphrates river, known for its well-preserved ruins that offer insights into various cultures including the Romans, Persians, and others.