Which of the Following Is Not an Example of Internal

question 162

Multiple Choice

Which of the following is not an example of internal control over cash?

• A)Preparation of a cash budget
• B)Daily deposits of cash receipts at the bank
• C)Combining the functions of signing checks with the approval of expenditures
• D)Preparation of bank reconciliation

---

Definitions:

Investment Time Horizon

The length of time an investor expects to hold an investment before taking the money out.

Pension Liability

The amount of money a company or governmental entity is required to pay into its pension plan to satisfy future pension obligations to retired employees.

Actuary

A professional who assesses and manages the risks of financial investments, insurance policies, and other potentially risky ventures using mathematics, statistics, and financial theory.

Pension Payments

Regular payments made to retirees or their beneficiaries from a pension fund.