Which of the following does not contribute toward achieving internal control over cash?
A)The practice of making small cash disbursements directly from the current day's cash receipts
B)The preparation of cash budgets
C)The use of a petty cash fund
D)The practice of approving every expenditure before the cash disbursement is made

Question

Quizplus · Accepted Answer

Making small cash disbursements directly from the current day's cash receipts does not contribute towards achieving internal control over cash as it is a practice that bypasses traditional internal control procedures such as approval and documentation of expenditures. The other options (preparation of cash budgets, use of a petty cash fund, and approval of every expenditure before cash disbursement) are all internal control measures that help to ensure accurate and secure handling of cash.

Which of the Following Does Not Contribute Toward Achieving Internal