Cash Controls

1. At regular intervals, the business' records must be checked agains, or reconciled with, an independent record called a bank statement - this is called 'Bank Reconciliation'. Do you agree/think that it is true that this is an important cash control?

True

False

2. All payments should be made by cheque or direct debit (electronic funds transfer) unless it is small enough to be made out of a .............................

Petty Cash Fund

Cash Register

3. Match the following to the control principle that best fits:

1.Employees who receive or handle cash should not be involved with the recording of these transactions in the accounting records.

Employees are less likely to commit fraud if they know they can be moved from that job without prior notice.

Submit

5. All cash should be kept in a:

Cash Register

Safe

Safe Place

Bank Account

Submit

7. Cash is important as:

Most transactions eventually lead to the business receiving cash (cash receipts) or paying cash (cash payments)

Because cash is easily stolen, adequate controls must be implemented to ensure that people with dishonest intentions are detected

It allows us to create a cash budget

Submit