MULTIPLE CHOICE

____9. Which of the following is NOT a feature of a good internal accounting control system?

a.The surprise suspension of certain employees. b. Separation of accountability from custodianship. c. Rotation of personnel. d. Internal auditing. e. Division of work.

___10. Procedures requiring that the recording of asset transactions be separated from the custody of those assets:

a. Will uncover collusion among employees. b. Are important only in very large businesses. c. Are especially important in handling cash and negotiable items. d. Make it easy for an employee to cover up the theft of an asset. e. None of these.

____11 After completing a bank reconciliation, you are preparing journal entries to adjust the firms cash account balance to agree with the adjusted balance shown on the reconciliation. Which of the following requires a journal entry?

a. Deposits in transit at the end of the period. b. Outstanding checks at the end of the period. c. An error by the bank in recording one of the firms deposits. d. An NSF checkNone of these.