1. A properly designed internal control system: A) Lowers the company's risk of loss B) Insures profitable operations C) Eliminates the need for an audit D) Requires the use of non-computerized systems E) Is not necessary if the company uses a computerized system 2. A company replenishes its $500 petty cash fund. Its petty cashbox has $75 cash and petty cash receipts of $420 in repairs expense. The entry to replenish the fund includes A) A debit to Cash for $75 B) A credit to Cash for $75 C) A credit to Petty Cash for $420 D) A credit to Cash Over and Short for $5 E) A debit to Cash Over and Short for $5 3. Cash equivalents: A) Are short-term, highly liquid investment assets B) Include 6-month certificates of deposit C) Include checking accounts D) Are recorded in petty cash E) Include money orders 4. A bank does not reduce the account of the depositor of which of the following? A) All withdrawals through an ATM B) A fee assessed to the depositor's account C) An uncollectible check D) Periodic payments arranged in advance, by a depositor E) A deposit to their account 5. The principles of internal control include: A) Separate recordkeeping from custody of assets B) Maintain minimal records C) Use only computerized systems D) Bond all employees E) Require automated sales systems