for cash LO P1A both cash receipts and oject (MSA) Help Save & Exit S Check my w

Question

for cash LO P1A both cash receipts and oject (MSA) Help Save & Exit S Check my w QS 6-3 Internal control for cash LO P1 A good system of internal control for cash provides adequate procedures for protecting both cash receipts and cash disbursements. Identify which one of following statements is true regarding this protection. 1. A basic guideline for safeguarding cash is to require hat al cash receipts be deposited daly 2. A basic quideline for safeguarding cash is to require that all cash receipts be deposited monthy 3 A petty cash system of control is a system to saleguard cash receipts 4. A petty cash system of control is not an adequate control system to safeguard cash disbursements

Explanation / Answer

Basic Guideline for safety of cash deposit require that all cash will be deposited daily in bank account. and for the safety of payment there is petty cash system is maintained. Petty Cash : In this system a fixed amount is maintained for dailly expenses after certain time Difference will be refilled by paying cash in petty cash system. So petty cash system is made only for the safeguard and tracking cash expenses So as per the above , Answer = 1) True Answer = 2) False , because the cash should be deposited daily. Answer = 3) False , Bacause the petty cash system is for cash payment Answer = 4) False, Because it is made only for the safeguard of the cash disburshment

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