From an internal control standpoint the asset most susceptible to improper diversion and use is

A) prepaid insurance.
B) cash.
C) buildings.
D) land.

Question

From an internal control standpoint the asset most susceptible to improper diversion and use isA)  prepaid insurance.B)  cash.C)  buildings.D)  land.

Hunter Spencer · Accepted Answer

Final Answer : B, Explanation :  Cash is the asset most susceptible to improper diversion and use because it is a liquid asset that can easily be stolen or misused without detection. Prepaid insurance, buildings, and land are not as susceptible to improper diversion and use because they are not easily converted to cash and generally require more oversight and documentation.

From an internal control standpoint the asset most susceptible to improper diversion and use is

A) prepaid insurance.
B) cash.
C) buildings.
D) land.

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Learning Objectives

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