The essential element of the internal control of cash is:

Question

Quizplus · Accepted Answer

The bank reconciliation is essential in the internal control of cash as it helps to ensure that the cash balance in the accounting records matches the actual balance in the bank account. This includes verifying the accuracy of deposits and withdrawals, and identifying any discrepancies that may indicate fraud or errors in the accounting system. While a strong safe and petty cash system can also be important components of internal control, they are less critical than the bank reconciliation in ensuring the accuracy and security of a company's cash. The double entry accounting system is a fundamental accounting concept that applies to all financial transactions, but it is not specifically related to the internal control of cash.

The Essential Element of the Internal Control of Cash Is