Final answer:
Businesses should prove cash as often as necessary to ensure the accuracy of financial records, with the frequency depending on the business's transaction volume and internal policies.
Step-by-step explanation:
A business should prove cash c. as often as necessary to maintain accurate financial records and ensure that all transactions are accounted for properly.
Proving cash is an essential part of a business's internal control procedures. This process involves verifying that the amount of cash reported in the company's records matches the actual amount of cash on hand. This should be done regularly to prevent discrepancies, fraud, and errors.
Meanwhile, less cash-intensive businesses might do so weekly or monthly. Performing this procedure after a bank reconciliation is also recommended, as it can help identify any discrepancies between bank records and the company's cash records. Annual verification is insufficient as errors and irregularities can accumulate and go unnoticed for too long, potentially leading to significant financial loss or even legal issues.