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Refer to the Following Table to Answer the Following Questions

question 102

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Refer to the following table to answer the following questions: Refer to the following table to answer the following questions:   -As credit card balances increase,what will be the consequence for M1 and M2? A)  There will be no effect on M1 or M2. B)  M1 will decrease and M2 will increase. C)  M1 will increase and M2 will decrease. D)  M1 and M2 will both decrease. E)  M1 and M2 will both increase.
-As credit card balances increase,what will be the consequence for M1 and M2?

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Definitions:

Internal Control

Initiatives and standards implemented by a firm to assure the correctness of financial and accountancy details, encourage integrity, and obstruct fraudulent activities.

Journal Entries

The method by which all business transactions are initially recorded, using a system of debits and credits, to maintain the financial records of an entity.

Segregation Of Duties

A key internal control that prevents fraud and errors by ensuring that no single individual has control over all aspects of a financial transaction.

Custody

The protective care or guardianship of someone or something, often referring to the control over assets or minors.

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