The Control of All Funds During the Count of Cash

question 67

Multiple Choice

The control of all funds during the count of cash on hand is meant primarily to prevent

• A) any chance of double counting.
• B) transfers by the entity's personnel of counted to uncounted funds.
• C) unauthorized disbursements.
• D) cash going missing.

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Definitions:

BAT Model

A behavioral approach to financial modeling that incorporates psychological factors into market predictions.

Miller-Orr Model

A financial model used to manage cash balances and optimize the level of cash holdings by setting upper and lower limits within which the balance can fluctuate before triggering a transfer of funds.

Cash Balance

The amount of cash a company has on hand, which includes currency, coins, and balances in checking and savings accounts.

Low Cash Balance

A situation where an individual or organization has a minimal amount of cash on hand, potentially affecting their ability to cover short-term liabilities.