Accounting

1.Cash and accounts receivable are a companys least liquid assets

1. A. True
2. B. False

2. Cash equivalents have a maturity date within three months of the date of acquisition.

1. A. True
2. B. False

3. For internal control purposes, if duties are effectively separated, there is no way fraud can occur.

1. True
2. False

4. When preparing a bank reconciliation, the balance as reported by the bank is adjusted until it agrees with the balance reported in the companys books

1. True
2. False

5. The likelihood a customer will default on payments depends on the customers creditworthiness.

1. True
2. False

6. Accounts receivable are reflected on the statement of financial position at their gross amounts.

1. True
2. False

8) All of the following are normally considered liquid assets of a company except

a) accounts receivable.

b) inventory.

c) notes receivable.

d) short-term investments.

9) The effectiveness of internal control is limited by

a) fraud.

b) cash on hand.

c) collusion.

d) all of the above

e) none of the above

10) All of the following are examples of physical controls except

a) locks.

b) fences.

c) bank reconciliations.

d) alarms.