Exam Name: Dalc: I. Which one of the following is not an objective of a system of internal contrl A) Redace the risks of crrors B) Safeguard company assets C) Enhance the accuracy and reliability of accounting rocords D) Overstate liabilities in onder to be conservative 2. Internal control is defined, in part, as a plan that safeguands A) all balance sheet accounts. B) liabilities. C) capital stock. D) assets. 3. When two or more people get together for the purpose of circumventing controls, it is called A) bonding of employees B) collusion. C) a fraud committee. D) a division of duties 4. Related selling activities do not include A) making a sale. B) shipping the goods. C) ordering the merchandise. D) billing the customer. 5. A bank statement A) shows the activities that increased or decreased the depositor's account balance. B) is a credit reference letter written by the depositor's bank. C) lets a depositor know the financial position of the bank as of a certain date. D) is a bill from the bank for services rendered. 6. A NSF check should appear in which section of the bank reconciliation? A) Addition to the balance per bank. B) Deduction from the balance per books. C) Addition to the balance per books D) Deduction from the balance per bank. Version 2 Page