choice question must finish in 2 hours it’s time limit Question 1 (1 point) An effective system of internal control will segregate functions between individuals to reduce the potential for errors and fraud.
Question 1 options:TrueFalseQuestion 2 (1 point) When one individual is responsible for all of the related activities, the potential for errors and fraud is increased.
Question 2 options:TrueFalseQuestion 3 (1 point) Independent internal verification should be made periodically and should be done by an employee who is independent of the employee responsible for the information.
Question 3 options:TrueFalseQuestion 4 (1 point) The duties of receiving cash, recording cash receipts transactions, and having custody of cash should be assigned to a single capable individual.
Question 4 options:TrueFalseQuestion 5 (1 point) At the end of an accounting period, a debit balance of $99.00 in the Cash Over and Short account would be reported in the income statement as Miscellaneous Revenue.
Question 5 options:TrueFalseQuestion 6 (1 point) A check is a written order signed by the depositor directing the bank to pay a specified sum of money to a designated recipient.
Question 6 options:TrueFalseQuestion 7 (1 point) Cash proceeds collected by the bank for a depositor would be identified in the bank statement by a credit memorandum to explain the entry.
Question 7 options:TrueFalseQuestion 8 (1 point) The lack of agreement between the balance per books and the balance per bank is due to time lags and errors by either party.
Question 8 options:TrueFalseQuestion 9 (1 point) An outstanding check that was also outstanding the previous month should not be included in the reconciliation of the bank statement this month.
Question 9 options:TrueFalseQuestion 10 (1 point) A postage due expense of $4.75 would be paid out of petty cash and the entry to record the transaction would reduce the balance of the Petty Cash account by that amount.
Question 10 options:TrueFalseQuestion 11 (1 point) Which of the following is a primary concern of internal control?
Question 11 options:Promote training programs and control incentives
Enhancing the reliability of accounting data
Ensuring fairness of the financial statements
Encouraging adherence to prescribed managerial performance
Question 12 (1 point) Each of the following is an attribute of internal control except
Question 12 options:segregation of duties.
establishment of responsibility.
independent internal verification.
a sound marketing plan.
Question 13 (1 point) A company issues a check for $75 but records it incorrectly as $57. On the bank reconciliation, the $18 should be
Question 13 options:deducted from the balance per bank.
added to the balance per bank.
deducted from the balance per books.
deducted from the balance per books and added to the balance per bank.
Question 14 (1 point) Irwin, Inc. has the following assets at the balance sheet date:
Cash in bank—savings account $4,000
Amounts due from customers 7,000
Post-dated checks 2,000
Checking account balance 6,000
Which amount should be reported as cash in the balance sheet?
Question 14 options:
Question 15 (1 point) A $100 petty cash fund has cash of $17 and valid receipts for $81. The journal entry upon replenishment would include a
Question 15 options:credit to Cash for $81.
credit to Cash Over and Short for $2.
debit to Cash for $81.
debit to Cash Over and Short for $2.
Discussion : Visit a favorite eatery. Describe some of the internal controls that are implemented in the workplace. Discuss the good and effective internal controls and also discuss areas that need to be addressed where the eatery is vulnerable to losses.