1)All of the following are purposes of internal control except to:

A) prevent and detect error and fraud.

B)ensure accurate and reliable accounting records.

C)safeguard assets.

D)promote operational inefficiency.

1)_______

2)Internal control is the organizational plan and related measures that:

A)prevents the safeguard of assets.B)ensures accurate accounting records.

C)encourages operational inefficiency.D)Eliminates errors and fraud.

2)_______

3)Separation of authorization of transactions from custody of related assets is related to proper separation of duties.

3)_______

4)Separation of duties andresponsibilities is essential in the control procedures for both cash receipts and cash disbursements.

4)_______

5)The employee who processes cash payments should have nothing to do with the approval process. This is a part of which characteristic of internal control?

A)competent, reliable, and ethical B)proper authorizationpersonnel

C)separation of dutiesD)assignment of responsibilities

5)_______

6)The cheques that have been paid by the bank on behalf of the depositor and included with the bank statement are called:

A)cheques in transit.B)cancelled cheques.C)outstanding cheques.D)deposited cheques.

6)_______

7)An NSF cheque would be entered into the books by a debit to accounts receivable.

7)_______

8)Which of the following would be a reconciling item on the bank side of the reconciliation?

A)non-sufficient funds cheque for $75B)service fee of $20

C)collection of note receivable for $1,000D)bank recorded a $2,000 deposit as $200

8)_______

9)If a cash register is short by $93, and the cash register tape equalled $9,270, then:

9)_______

A)Sales Revenue is credited for $9,177.B)Cash Short and Over is debited for $93.

C)Cash is debited for $9,270.D)Cash Short and Over is credited for $93.

10)All of the following are controls over petty cash except:10)______

A)supporting all fund payments with a petty cash ticket.

B)replenishing the fund through normal cash payment procedures.

C)designating one employee to administer the fund.

D)keeping an unlimited amount of cash on hand.