The asset that most requires strict adherence to internal control procedures is Blank______.Multiple choice question.inventoryreceivablescash

Break Down the Problem

1. Identify the assets listed in the multiple-choice question: inventory, receivables, cash.
2. Determine which asset typically requires the most stringent internal control procedures.

Relevant Concepts

1. Internal Control Procedures: These are methods and policies used by organizations to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.
2. Asset Vulnerability: Usually, the asset that is most susceptible to theft, misplacement, or mismanagement will require tighter controls.

Analysis and Detail

1. Inventory: While inventory theft can be significant, it often has broader recording and management policies in place (like counting and inventory management systems).
2. Receivables: While important, they are typically managed by accounting systems and can often be tracked through contracts and invoices.
3. Cash: Cash is the most liquid asset and is particularly vulnerable to theft and embezzlement. It often requires daily reconciliation, segregation of duties, and strict authorization for access and transactions.

Verify and Summarize

Considering the vulnerability and the necessary controls typically associated with each asset, cash stands out as the asset that requires the most stringent internal control procedures.

Final Answer

Cash is the asset that most requires strict adherence to internal control procedures.