Final answer:
Making most payments in cash is not a solid internal control; it is b. false. Banks provide secure and efficient methods like checks and debit cards for transactions. These methods better support tracking and internal controls.
Step-by-step explanation:
The question pertains to whether it is a good internal control for a business to make most payments by cash rather than by check. The assertion that making payments in cash is a solid internal control is false.
Banks facilitate the handling of transactions in a complex economy, making it unnecessary to carry large amounts of cash for purchases or business operations. Instead, money can be stored in checking or savings accounts and accessed through various methods like direct withdrawals, checks, or debit cards.
These banking services provide secure and efficient ways to handle financial transactions, while also offering important mechanisms for tracking and recording payments, which are key aspects of strong internal control systems.