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.

Question

Quizplus · Accepted Answer

Effective internal controls for cash require multiple checks and balances to ensure that cash is handled properly. Using prenumbered checks for disbursements helps keep track of each transaction and prevents unauthorized spending. Depositing cash in the bank on a timely basis ensures that there is minimal cash on hand, reducing the risk of theft or loss. Providing written cash receipts to customers gives clear evidence of payment and helps prevent disputes. Therefore, all of these methods are effective internal controls for cash.

Effective Internal Controls for Cash Include