Effective internal controls for cash include
A)disbursements made by prenumbered check.
B)cash deposited in the bank on a timely basis.
C)written cash receipts given to customers as evidence of payment.
D)all of these answer choices are correct.

Question

Quizplus · Accepted Answer

All of these options are effective internal controls for cash. Prenumbered checks help ensure that all disbursements are recorded and accounted for, timely bank deposits ensure that cash is not left vulnerable for long periods of time, and written cash receipts provide evidence of payment and prevent employees from pocketing cash without recording the transaction. Combining these controls helps to prevent errors and fraud in the handling of cash transactions.

Effective Internal Controls for Cash Include