Question 1

Bank debit memorandum increases the bank balance.

Accepted Answer

A) True 
 B)False  False

Question 2

The following explain limitations of internal control except:

Accepted Answer

A)  Lack of proper employee training 
B)  The size of the company which makes segregation of duties difficult 
C)  Collusion occurring between two or more employees 
D)  If a company requires its employees to take vacations 
A)  Lack of proper employee training 
B)  The size of the company which makes segregation of duties difficult 
C)  Collusion occurring between two or more employees 
D)  If a company requires its employees to take vacations D

Question 3

EFT transactions have resulted in better internal control.

Accepted Answer

A) True 
 B)False  True

Question 4

Internal control is more effective when ___________________________ (one person is, two people are) responsible for a task.

Accepted Answer

Internal control is

Question 5

Companies that have a lot of cash payments often use a special journal, called a cash payments journal, to record all payments of cash

Accepted Answer

A) True 
 B)False

Question 6

Cash proceeds collected by the bank for a depositor would be identified in the bank statement by a credit memorandum to explain the entry.

Accepted Answer

A) True 
 B)False

Question 7

Related activities should be assigned to _______ (the same person, different people)

Accepted Answer

Related activities s

Question 8

The separation of accounting responsibility from the custody of assets is especially important for what assets?__________________________________________

Accepted Answer

Cash and i

Question 9

Each of the following is a control activity except:

Accepted Answer

A)  segregation of duties. 
B)  establishment of responsibility. 
C)  independent checks of performance. 
D)  a sound marketing plan. 
A)  segregation of duties. 
B)  establishment of responsibility. 
C)  independent checks of performance. 
D)  a sound marketing plan.

Question 10

When one individual is responsible for all of the related activities, the potential for errors and fraud is increased.

Accepted Answer

A) True 
 B)False

Question 11

Independent reviews should occur periodically and should be done by someone who is independent of the employee responsible for the information

Accepted Answer

A) True 
 B)False

Bank debit memorandum increases the bank balance.

The following explain limitations of internal control except:

EFT transactions have resulted in better internal control.

Internal control is more effective when ___________________________ (one person is, two people are) responsible for a task.

Companies that have a lot of cash payments often use a special journal, called a cash payments journal, to record all payments of cash

Cash proceeds collected by the bank for a depositor would be identified in the bank statement by a credit memorandum to explain the entry.

Related activities should be assigned to _______ (the same person, different people)

The separation of accounting responsibility from the custody of assets is especially important for what assets?__________________________________________

Each of the following is a control activity except:

When one individual is responsible for all of the related activities, the potential for errors and fraud is increased.

Independent reviews should occur periodically and should be done by someone who is independent of the employee responsible for the information

Accounting in Action

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Accounting for Receivables

Long-Lived Assets

Current Liabilities

Financial Reporting Concepts

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and IFRS

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Filters

Exam 7: Internal Control and Cash

Bank debit memorandum increases the bank balance.

The following explain limitations of internal control except:

EFT transactions have resulted in better internal control.

Internal control is more effective when ___________________________ (one person is, two people are) responsible for a task.

Companies that have a lot of cash payments often use a special journal, called a cash payments journal, to record all payments of cash

Cash proceeds collected by the bank for a depositor would be identified in the bank statement by a credit memorandum to explain the entry.

Related activities should be assigned to _______ (the same person, different people)

The separation of accounting responsibility from the custody of assets is especially important for what assets?__________________________________________

Each of the following is a control activity except:

When one individual is responsible for all of the related activities, the potential for errors and fraud is increased.

Independent reviews should occur periodically and should be done by someone who is independent of the employee responsible for the information

Accounting in Action

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Accounting for Receivables

Long-Lived Assets

Current Liabilities

Financial Reporting Concepts

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and IFRS

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Filters