dentify the basic internal control guidelines which should be in place to protect a business's cash by selecting the correct answers below. (Check all that apply.) Excess cash should be left in the bank to maintain liquidity. Cash receipts are promptly deposited in a bank. Cash payments are made by check. Handling cash is separate from recordkeeping of cash. Bills should be paid immediately.

Question

Business

Troy Santiago

18 September, 09:02

dentify the basic internal control guidelines which should be in place to protect a business's cash by selecting the correct answers below. (Check all that apply.) Excess cash should be left in the bank to maintain liquidity. Cash receipts are promptly deposited in a bank. Cash payments are made by check. Handling cash is separate from recordkeeping of cash. Bills should be paid immediately.

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Answers (1)

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Karli Krause · Answer 1

Handling cash is separate from recordkeeping of cash.

Cash payments are made by check.

Cash receipts are promptly deposited in a bank.

Explanation:

The only option that was not correct was leaving the cash in the bank. We go to bank to deposit the cash not leaving the money in the bank so that our cash is protected by third party (Bank) for a small fee.

The handling of cash by two separate person brings segregation of duties which is fraud preventive approach and would safeguard the asset.

Paying and receiving in checks safeguards the asset their is no chances of theft of cash left in the till.

Promptly depositing of cash keeps the cash low in the till and lower cash balances don't motivate thieves for trying their luck here.