Question 1

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Accepted Answer

A) True 
 B)False

Question 2

Fitzgerald Company wrote checks totaling $34,160 during October and $37,300 during November. $32,480 of these checks cleared the bank in October, and $36,440 cleared the bank in November. What was the amount of outstanding checks on November 30?

Accepted Answer

A) $2,860 
B) $1,680 
C) $2,540 
D) $3,140 
A) $2,860 
B) $1,680 
C) $2,540 
D) $3,140

Question 3

Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of

Accepted Answer

A) inadequate internal control. 
B) duplication of effort. 
C) external verification. 
D) segregation of duties. 
A) inadequate internal control. 
B) duplication of effort. 
C) external verification. 
D) segregation of duties.

Question 4

An application of good internal control over cash disbursements is

Accepted Answer

A) following payment, the approved invoice should be stamped PAID. 
B) blank checks should be stored in the treasurer's desk. 
C) each check should be compared with the approved invoice after the check is issued. 
D) check signers should record the cash disbursements. 
A) following payment, the approved invoice should be stamped PAID. 
B) blank checks should be stored in the treasurer's desk. 
C) each check should be compared with the approved invoice after the check is issued. 
D) check signers should record the cash disbursements.

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Fitzgerald Company wrote checks totaling $34,160 during October and $37,300 during November. $32,480 of these checks cleared the bank in October, and $36,440 cleared the bank in November. What was the amount of outstanding checks on November 30?

Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of

An application of good internal control over cash disbursements is

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 7: Fraud, Internal Control, and Cash

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Fitzgerald Company wrote checks totaling $34,160 during October and $37,300 during November. $32,480 of these checks cleared the bank in October, and $36,440 cleared the bank in November. What was the amount of outstanding checks on November 30?

Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of

An application of good internal control over cash disbursements is

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters