5 Questions
Which of the following is a reason why cash is considered the most liquid asset?
It is the medium of exchange
What are the three key duties that smart managers separate in processing transactions?
Asset handling, recordkeeping, and transaction approval
Why is it important for businesses to deposit all cash receipts in the bank and make all cash payments through the bank?
To control cash
Why should no employee have responsibility for both handling cash and recording cash transactions in the accounting records?
To prevent theft
What is one advantage of keeping cash in a bank account?
Banks provide independent records of cash transactions
Test your knowledge on cash controls and transaction processing with this quiz. Learn about the importance of separating duties, handling assets, and recordkeeping to ensure the security and integrity of cash transactions in businesses.
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