Answer and explain. Thank you in advance! <3

1. What is the best way to discourage a sales clerk from using sales invoice to make a cash sale to a customer and then pocketing the cash and destroying the company's copy of the sales invoice?

A. Serialization of sales invoice

B. Separation of duties for making the sale and recording the sale in the journal

C. Verification of sales invoice

D. Authorization of sales invoice

2. Which of the following would most likely NOT appear as a reconciling item on a bank reconciliation prepared at the end of October?

A. Bank service charges for the month of august

B. Deposit in transit on october 31

C. Error in the depositors account made by the bank during october and discovered by the depositor when examining the bank statement

D. Checks which were disbursed and recorded by the depositor in July and were paid by the bank during August

3. Which of the following would NOT a company a monthly bank statement

A. Copies of bank credit memos issued during the month

B. Depositor's checks paid by the bank during the month

C. Copies of bank debit memos issued during the month

D. copies of outstanding check at the end of the month

4. What is another term for irregularities?

A. Defects in internal control

B.unintentional mistake

C. Fraud

D. Errors

5. It is the minimum account balance that the company agrees to maintain as a support or collateral for a loan of a depositor.

A. Money-market instrument

B. Initial deposit

C. Sinking fund

D. Compensating balance

6. It is an extensive network of approval by authorized individuals acting independently to ensure that all disbursement by check are proper.

A. Computerized system

B. Verifiable system

C. Voucher system

D. Electronic fund transfer system

7. What are outstanding checks?

A. Customer check which have been returned by the bank because the customers bank would not honor them

B. Depositors checks which have been processed by the bank but have not yet been recorded by the depositor.

C. Depositories check which have not yet cleared the banking system

D. Checks that have been lost in the mail

8. What is the basic internal control that is being applied when the work assignment for (1) employee is designed to check on the work of another employee?

A. Independent internal verification

B. Separation of duties

C. Documentation procedures

D. Double duties

9. What is the effect of a debit memorandum issued by a bank?

A. Increases the depositors account balance

B. Decreases the depositors account balance

C. Does not affect the depositors account balance

D. Be recorded as a debit to cash on the depositors book

10. Which of the following is a main objective of a good system of internal control?

A. Provide a means of gathering information about competitors

B. Increase sales

C. Prosecute employees who embezzle from the company

D. Prevent errors and irregularities in the accounting records