Internal control is mainly concerned with the amount of authority a supervisor exercises over a subordinate. O True O False Internal control is most effective when only one person is responsible for a given task. True False The responsibility for keeping the records for an asset should be separate from the physical custody of that asset. True False Control over cash disbursements is improved if major expenditures are paid by check. True False Personnel who handle cash receipts should have the option of taking a vacation. O True O False An effective system of internal control will segregate functions between individuals to reduce the potential for errors and fraud. True False Independent internal verification should be made periodically and should be done by an employee who is independent of the employee responsible for the information." True False The duties of receiving cash, recording cash receipts transactions, and having custody of cash should be assigned to a single capable individual." True False A check is a written order signed by the depositor directing the bank to pay a specified sum of money to a designated recipient. True False The lack of agreement between the balance per books and the balance per bank is due to time lags and errors by either party." True False Cash and cash equivalents are comprised of coins, currency (paper money), money orders, and NSF checks." O True False The principles of internal control include establishment of responsibility and management responsibility. True False 1 Permitting only designated personnel such as cashiers to handle cash receipts is an application of the principle of segregation of duties. True False In a bank reconciliation, deposits in transit are deducted from the book balance. O True False A check is written to replenish a $100 petty cash fund when the fund contains receipts of $94 and $4 in cash. In recording the check, debit Petty Cash for $94. and credit Cash for $94." True False