Question

1. merchant service providers (e.g., square/stripe) who primarily seek businesses and industrial corporation customers:

a. replace banks entirely
b. process electronic payments and integrate with pos/e-commerce
c. provide long - term commercial loans
d. insure deposits directly

1. a petty cash system should always include:

a. shared access for speed
b. no receipts for small items
c. locked box, custodian, vouchers/receipts, regular reconciliation
d. weekly cash giveaways

1. internal controls primarily exist to:

Explanation:

• Question 11: Merchant service providers like Square/Stripe are known for their role in handling electronic payments. They integrate with point - of - sale (POS) systems and e - commerce platforms. They do not replace banks entirely (banks still have roles like deposit insurance and long - term lending), they don't typically provide long - term commercial loans (that's more of a bank's role in traditional finance), and they don't insure deposits (FDIC in the US is responsible for deposit insurance in banks).
• Question 12: A petty cash system needs proper controls. A locked box ensures security, a custodian is responsible for the cash, vouchers/receipts provide a record of transactions, and regular reconciliation ensures accuracy. Shared access can lead to misappropriation, no receipts for small items is bad record - keeping, and weekly cash giveaways are not a part of a proper petty cash system.

Answer:

1. B. Process electronic payments and integrate with POS/e - commerce
2. C. Locked box, custodian, vouchers/receipts, regular reconciliation