Exam 8: Internal Control and Cash

Internal auditors are employees of the business who ensure that employees are following company policies and that operations are running efficiently.

Which of the following statements describes a receiving report?

The journal entry to open a new petty cash fund includes a debit to the Petty Cash account and a credit to the Cash account.

Burglar alarms, fire alarms, and security cameras improve internal control.

Which of the following would be included in the entry to record the replenishment of a petty cash fund?

Which of the following statements about internal control is true?

All items on the book side of the bank reconciliation require journal entries.

Which of the following is used by companies to separate cash duties and establish stronger control over cash receipts?

Before any internal control procedure is initiated, which of the following questions must be primarily addressed by a company?

The petty cash fund has a current balance of $200. Based on activity in the fund, it is determined that the balance needs to be changed to $400. Which journal entry is needed to make this change?

Which of the following is a benefit provided by internal control?

Which of the following is an attribute of the internal control procedure-assignment of responsibilities?

A system cannot be overcome or broken into if its internal controls are properly designed and structured.

A check for which a maker's bank account has inadequate money to pay the check is known as ________.

A check was written by a business for $507 but was recorded in the journal as $705. How would this error be included on the bank reconciliation?

A deposit ticket is a document that instructs a bank to pay the designated person a specified amount of money.

A way to account for petty cash by maintaining a constant balance in the petty cash account and which at any time requires that cash plus petty cash tickets must total the amount allocated to the petty cash fund, is known as the ________.

Cadmia Services hired a new clerk to keep custody of and maintain all the equipment in the equipment yard. The clerk has not yet been adequately trained on the maintenance needs of the equipment. In the above situation, which internal control procedure needs strengthening?

For the following situation, state whether it represents a strength or weakness in internal control and give the reason for your answer. Second National Bank requires mandatory vacations and job rotation.

A(n) ________ is a device that enables members of a local network to access the network while keeping nonmembers out of the network.