The volume of transactions is enormous and the risk of handling errors is significant for:
A)cash.
B)inventory.
C)accounts receivable.
D)computer software.

Question

Quizplus · Accepted Answer

Internal control for cash is important for two main reasons.First,because the volume of cash transactions is enormous,the risk of cash-handling errors is significant.Second,because cash is valuable,portable,and "owned" by the person who possesses it,it poses a high risk of theft.

The Volume of Transactions Is Enormous and the Risk of Handling