Exam 4: Internal Control Cash

Interest paid on a company's checking account should appear on the bank reconciliation as:

Which of the following is an accurate statement regarding cash receipts over the counter?

In a bank reconciliation, items recorded by the bank, but not yet recorded by the company, include:

The primary way that fraud and errors are prevented is by external auditors.

A malicious program that enters program code without consent and performs destructive actions in the victim's computer files or programs is a(n):

The bank reconciliation can be used to control cash.

The primary way that fraud is prevented and detected is through a proper system of:

Cash requires specific internal controls because:

Which of the following would NOT be journalized from the bank reconciliation?

When a company receives cash by mail:

The basic attributes of internal control are the same for a sophisticated IT system and a manual system.

Collusion is the method widely used to defeat the adequate segregation of duties.

Payments by check is an important internal control for all of the following reasons EXCEPT for:

In a bank reconciliation, a NSF check is:

Cash equivalents include all of the following EXCEPT:

Outstanding checks are checks that have been recorded by the bank, but are not yet recorded on the books.

Smart hiring practices and separation of duties includes:

A business can have their customers pay directly to the bank. This is a(n) ________ system and can reduce theft.

Three key duties must always be separated under a good system of internal controls:

The "tone at the top":