Effective cash management and control includes all of the following except
A) The use of a petty cash fund
B) Bank reconciliations
C) Short-term investments of excess cash
D) Purchase of stocks and bonds

Question

Quizplus · Accepted Answer

Purchase of stocks and bonds is not typically considered part of cash management and control, as it involves longer-term investments that are not directly related to managing available cash on a day-to-day basis. The other options listed (petty cash fund, bank reconciliations, and short-term investments of excess cash) are all key components of effective cash management and control.

Effective Cash Management and Control Includes All of the Following