Which of the Following Is Not a Reason Why a Business

question 52

Multiple Choice

Which of the following is not a reason why a business needs strong internal controls over cash?

• A) A small volume of high-denomination currency represents a significant amount of value.
• B) Ownership of cash is difficult to prove.
• C) Cash has universal appeal.
• D) Money is the common unit of measurement in business.

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Definitions:

Short-term

This term usually refers to a period of time less than one year, often used in the context of finance for investments or liabilities.

International Fisher Effect

An economic theory that suggests that the difference in nominal interest rates between two countries is directly proportional to the expected change in the exchange rate between their currencies.

Foreign Currency Approach

Relates to the strategy for evaluating investments by considering the impact of foreign exchange fluctuations on investment returns.

Swedish Krona

The official currency of Sweden, which is divided into 100 öre and is denoted by the symbol SEK.