MULTIPLE CHOICE. Please circle the letter of the best answer. 1. Which of the following would NOT be part of a sound internal control system? a. Making all significant payments by check b. Having regular reviews of employees c. Having one person handle all the duties of a department - d. Locking cash in a safe 2. Robertson Company has $80,000 in Accounts Receivable and a $3,000 credit balance in Allowance for Doubtful Accounts. If the company estimates that 1% of its $200,000 in credit sales this period are uncollectible, how much Bad Debts Expense should it record? $1,000 b. $3,000 c. $2,000 d. $5,000 3. A very small company would have the most difficulty fulfilling which of the following attributes of internal control? a. Sound personnel procedures, that is hiring ethical and competent employees. b. Separation of duties e. Periodic independent inspections d. Limited access to assets 4. A group of supporting accounts that comprise the balance of a general ledger account is called a a. trial balance. b. subsidiary ledger. c. aging account. d. CPA support group. 5. Which of the following statements is false? The Sales Journal is only for sales made on account. b. Special journals save time in recording and posting certain types of transactions. c. The general journal is never used when special journals are used. d. Strong internal control systems produce more reliable accounting data than do weak ones. 6. What column would be used by every entry in a cash payments journal Accounts Receivable Credit b. Cash Debit c Cash Credit d. Accounts Payable Credit 7. Internal control systems are designed to: a. prevent assets from theft or misuse, b. guarantee the impossibility of valuable assets being stolen from the company. c. maximize revenue. d. keep costs and expenses to a minimum. 8. If your company uses special journals, when will the total of all of your customers' account balances equal the balance in your Accounts Receivable account in the general ledger? a. At all times. b. Only at the end of the month. c. Only after all customers have paid you. d. Never.