Final answer:
Companies use checks to pay bills as they facilitate the separation of duties, provide a secure audit trail for transactions, and allow payments to be made in exact amounts. This is more secure than using cash and offers better tracking abilities for financial management. Option c. checks facilitate the separation of duties associated with cash payments.is the correct answer.
Step-by-step explanation:
Many companies opt to pay their bills using checks to facilitate the separation of duties associated with cash payments. Checks offer a greater level of security and control over transactions. When dealing with finances, especially in a business setting, it's essential to have a system in place that allows for tracking and auditing of expenditures. Unlike cash, which offers no inherent paper trail, checks provide documentation for every transaction made from a company's bank account, serving as proof of payment and helping in the reconciliation of accounts. Moreover, checks can be easily tracked and canceled if necessary, reducing the risk of theft. Additionally, using checks allows for the exact amount of money to be paid without the need for change, and though checks can indeed be written on any day of the week, it is the tracking and security features that businesses find most advantageous.
It's important to note that checks, while they can be more secure, are not immune to theft or fraud. However, compared to cash, they are generally a safer option for conducting business transactions as they leave an audit trail and can be cross-referenced with bank statements for accuracy. Therefore, the correct answer to the student's question is that companies use checks instead of cash because 'checks facilitate the separation of duties associated with cash payments'.