1. 1. Which of the following is not a means of strengthening cash controls?

   1. Preparing regular bank reconciliations
   2. Maintaining a cash over/short account
   3. Controlling petty cash
   4. Month end close process

   2. If starting with the cash balance of a company's general ledger, which of the following adjustments would not be included when completing a bank reconcilation?

   1. Add or subtract errors made in the accounting records
   2. Subtract bank service charges
   3. Add deposits in transit
   4. Add interest revenue
2. 1. An operating cycle may be as short as a few days.
   2. An operating cycle is important in measuring income.
   3. An operating cycle can be managed to increase net income.
   4. An operating cycle has no impact on the amount of capital needed.

   3. The operating cycle is important in measuring

   1. Assets
   2. Liabilities
   3. Income
   4. Stocks