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Questions and Answers
Which of the following is a reason why cash is considered the most liquid asset?
Which of the following is a reason why cash is considered the most liquid asset?
- It is difficult to control
- It is the medium of exchange (correct)
- It is easy to steal
- It is easy to conceal
What are the three key duties that smart managers separate in processing transactions?
What are the three key duties that smart managers separate in processing transactions?
- Asset handling, recordkeeping, and transaction approval (correct)
- Cash handling, bank deposits, and transaction recording
- Accounting duties, cash payments, and bank accounts
- Cash receipts, record alterations, and transaction control
Why is it important for businesses to deposit all cash receipts in the bank and make all cash payments through the bank?
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 (correct)
- To avoid bank fees
- To alter accounting records
- To hide cash transactions
Why should no employee have responsibility for both handling cash and recording cash transactions in the accounting records?
Why should no employee have responsibility for both handling cash and recording cash transactions in the accounting records?
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What is one advantage of keeping cash in a bank account?
What is one advantage of keeping cash in a bank account?
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