1. Cash equivalents are?

Select one:

often combined with cash and reported as a current asset.

reported as a non-current asset.

reported as a part of bank indebtedness.

reported as a current liability.

2. The control activity related to not having the same person authorize and pay for goods is known as

Select one:

review and reconciliation.

assignment of responsibility.

segregation of duties.

physical controls.

3. Which of the following statements is true?

Select one:

A good system of internal control does not require monitoring.

Control activities are most effective when several people are responsible for a given task.

When one individual is responsible for all related activities, the potential for errors and irregularities is decreased.

Risk assessment is one component of a good system of internal control.

4. Which of the following is not a limitation of internal control?

Select one:

the human element

the size of the company

cost of establishing control procedures

use of a bank account

5. On the April 30 bank reconciliation, a deposit made by a company to its bank account on April 18 will likely appear as a(n)

Select one:

deduction from the balance per books.

addition to the balance per books.

This will not affect the current periods bank reconciliation.

deduction from the balance per bank.

6. A cheque written by the company for $182 is incorrectly recorded as $218. On the bank reconciliation, the $36 error should be

Select one:

a. deducted from the balance per bank.

b. added to the balance per bank.

c. deducted from the balance per books.

d. added to the balance per books.