_________Clearly defined authority and responsibility

_________Segregation of duties

________Adequate documents and records

______Safeguards over assets and records

_____Checks on recorded amounts

A.	One employee or department should verify the work of another to determine that amounts are correct and that the correspond to properly authorized activites. An example would be to prepare a bank reconciliation.
B.	Specific approval is given by management for the performance of activities.
C.	Initial entry into the accounting system should be from a consistent source with complete information.
D.	Blank checks should be stored in a locked location.
E.	Accounting and cash collections should be properly separated.

2. Which of the following items would be added to the company's cash balance on a bank reconciliation?

		A. outstanding checks
		b. deposits in transit
		c. bank service charges
		d. interest earned on the bank account

3. Which one of the following is an accurate description of the Allowance for Bad Debts?

		a. Contra Account
		b. Liability Account
		c. Revenue Account
		d. Expense Account

4. All Star Auto has an accounts receivable balance after posting net collections from customers for 2013 of $180,000. The customers took advantage of sales discounts of $15,000. Management aged the accounts receivable and estimate for uncollected account percentages as follows:

$90,000	Current at 2%
$50,000	1-30 days past due at 5%
$30,000	31-60 days past due at 10%
$10,000	60+ days past due at 25%

The net realizable value of the accounts receivable is

		a. $173,200
		b. $170,200
		c. $172,700
		d. $180,000