Which of the following is not a good control activity over cash? A)Payments to creditors should be made in cash. B)There should be limited access to cash. C)The amount of cash on hand should be kept at a minimum. D)Cash should be deposited daily.

Question

Quizplus · Accepted Answer

Payments to creditors should generally not be made in cash because it does not provide an adequate audit trail, increases the risk of theft, and is harder to reconcile with accounting records. Other options enhance control over cash by limiting access, minimizing the amount on hand, and ensuring cash is deposited promptly.

Which of the Following Is not a Good Control Activity