Which one of the following statements is true? a.Sound internal control practice dictates that...

Question:

Which one of the following statements is true? a.Sound internal control practice dictates that cash disbursements should be made by check, unless the disbursement is very small. b. Petty cash can be substituted for a checking account to expedite the payment of all disbursements. c.Good cash management practices dictate that a company should maintain as large a balance as possible in its cash account. d.The person handling the cash should also prepare the bank reconciliation.

Cash disbursement:

Cash disbursement refers to the payment of cash, by an organization during a particular period either yearly or quarterly payment. It may include cash payments, payment through checks, or electronic transfer of funds.

Answer and Explanation:

An internal control practice refers to the rule and procedures which an organization implements to focus on ensuring the truthfulness of the...

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How to Manage Cash Disbursements

from Finance 101: Principles of Finance

Chapter 18 / Lesson 4
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