Along with petty cash, expense receipts for postage, office supplies, etc., several post dated employee checks are in the petty cash fund. Which of the following statements is accurate regarding this. (5pts)

Office supplies should not be bought out of petty cash.

A company should always be available to cash employee checks.

This is an appropriate way to handle petty cash.

Petty Cash should be used for small amounts of cash and should not be mixed with other items.

2) After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing. What statement below is true about this process? (5pts)

Only the accountant should sign the checks.

The Accounts Payable Clerk should pay the bills.

This process is an example of good internal control.

There treasurer should retain all of the supporting documents and file them.

3) At the end of each day, all cash receipts are placed in the banks night depository. Which statement below is true? (5pts)

The accountant should journalize the entry for the cash and the sales for the day after counting the cash.

The accountant should count the money first, then place it in the depository.

Bank night depositories are not a safe place for your cash.

This is an example of good internal control processes.

4) The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documents are forwarded to the treasurer's office for approval. Which of the following statement is true? (5pts)

The treasurer's office should send the items back to the accounts payable clerk for further approval.

The accounts payable clerk should write the checks, then get approval.

This is a good example of internal control processes.

There are too many people involved in this process, it should just be one person handling it all.

5) All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts. Which of the following statements is true? (5pts)

Thisis an example of good internal control methods.

The accountant should handle the entire transaction.

The accountant should get the copy, not the accounts receivable clerk.

The mail clerk should just handle the cash too.

6) At the end of the day, cash register clerks are required to use their personal funds to make up any cash shortages in their registers. Which statement is the most true? (5pts)

As the cashier -- I will most likely not ring some items up throughout the day, to make sure y register is never short.

This will show them -- if they can't get the till to match up -- it is their problem.

This will make sure noone is stealing from the company.

This is an example of good internal control.

7) The cash deposits and check writing and signing are all done by the accountant. Which of the following statements is true. (5pts)

The person is most likely very trustworthy and you have nothing to worry about.

The accountant should not handle cash in a good internal control system.

This is an example of good internal control.

Only the accountant should sign all checks.

8) According to your instructor -- which of the following is the MOST IMPORTANT part of any internal control process? (5pts)

Control Environment -- attitude of owner/manager Let employees do whatever they want -- they will most likely be honest.

Employees not taking vacations is a good thing.

Do not teach rotation of duties -- it just mixes people up.