The services provided by banks help businesses to control cash by meeting which of the following control objectives?Multiple ChoiceEstablish responsibilitySegregate dutiesRestrict accessImprest the system
Question
The services provided by banks help businesses to control cash by meeting which of the following control objectives?Multiple ChoiceEstablish responsibilitySegregate dutiesRestrict accessImprest the system
Solution
The services provided by banks help businesses to control cash by meeting the following control objectives:
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Establish responsibility: Banks provide services such as account management, which allows businesses to assign responsibility for cash management to specific individuals or departments within the organization. This helps to ensure accountability and control over cash resources.
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Segregate duties: Banks offer various services that allow businesses to segregate duties related to cash management. For example, one person or department might be responsible for making deposits, while another might be responsible for reconciling bank statements. This segregation of duties helps to prevent fraud and errors.
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Restrict access: Banks provide secure storage for cash and restrict access to these funds. Only authorized individuals or departments within the business can access these funds, which helps to prevent theft and misuse.
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Imprest the system: Some banks offer imprest system services, which is a form of financial accounting system. The most common example of an imprest system is the petty cash system. These systems can help businesses to maintain control over small cash transactions.
So, the answer is all of the above.
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