7-5 20. A system of internal control a. is infallible b. can be rendered ineffective by employee collusion. c. invariably will have costs exceeding benefits. d. is premised on the concept of absolute assurance. 21. Postage stamps on hand are considered to be a. cash b. petty cash. C. cash equivalents. d. a prepaid expense. The use of remittance advices for mail receipts is an example of a. documentation procedures. b. other controls c. physical controls d. independent internal verification. 22. 23. Reconciling the bank statement monthly is an example of a. segregation of duties. b. independent internal verification. c. establishment of responsibility d. documentation procedures. Blank checks a. should be safeguarded. b. should be pre-signed. c. do not need to be safeguarded since they must be signed to be valid. d. should not be prenumbered. 24. 25. In preparing its bank reconciliation for the month of April 2020, Leno, Inc. has available the following information, Balance per bank statement, 4/30/20 $76,800 NSF check returned with 4/30/20 bank statement 940 Deposits in transit, 4/30/20 9,000 Outstanding checks, 4/30/20 9,300 Bank service charges for April 60 What should be the adjusted cash balance at April 30, 2020? a. $75,100. b. $75,800 c. $75,920 d. $76,500