Asked by Joshua Gagen on Jul 05, 2024
Verified
Which of the following is a key element of internal control over cash payments?
A) periodically reconciling the cash account balance on the company's books to the bank statement balance
B) making daily bank deposits
C) requiring that all petty cash vouchers be approved by two signatures
D) authorizing and verifying that all cash received is recorded daily
Internal Control
A process designed to ensure the reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.
Petty Cash Vouchers
Documents used to manage and record small, usually incidental, expenses paid out in cash from a designated petty cash fund.
- Recognize the elements and significance of internal control in managing cash inflows and outflows.
Verified Answer
CT
Cristi TorresJul 12, 2024
Final Answer :
A
Explanation :
Reconciling the cash account balance on the company's books to the bank statement balance is a key element of internal control over cash payments. It helps ensure that all cash payments are properly recorded and unauthorized transactions are identified.
Learning Objectives
- Recognize the elements and significance of internal control in managing cash inflows and outflows.
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