{"id":32739,"date":"2024-04-15T09:06:07","date_gmt":"2024-04-15T09:06:07","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=32739"},"modified":"2024-04-15T09:06:07","modified_gmt":"2024-04-15T09:06:07","slug":"to-verify-cash-transactions-what-is-necessary","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/to-verify-cash-transactions-what-is-necessary\/","title":{"rendered":"To verify cash transactions, what is necessary?"},"content":{"rendered":"

[amp_mcq option1=”System of internal control” option2=”Check all transactions” option3=”Documentary evidence for every transaction” option4=”All of the above” correct=”option4″]<\/p>\n

The correct answer is D. All of the above.<\/p>\n

A system of internal control is a set of policies and procedures designed to ensure the accuracy and reliability of financial reporting, the effectiveness and efficiency of operations, and the compliance with applicable laws and regulations.<\/p>\n

Checking all transactions means reviewing all cash receipts and disbursements to ensure that they are properly recorded and authorized.<\/p>\n

Documentary evidence is any document that supports a financial transaction, such as invoices, receipts, and bank statements.<\/p>\n

All of these are necessary to verify cash transactions. A system of internal control helps to ensure that transactions are recorded accurately and that there are no unauthorized transactions. Checking all transactions helps to identify any errors or irregularities. Documentary evidence provides proof of the occurrence of a transaction.<\/p>\n

Here are some additional details about each of the options:<\/p>\n