Q5-51. All of the following are objectives of internal control except a. to safeguard assets. b. to maximize net income. c. to comply with legal requirements. d. to ensure accurate and reliable accounting records. Q5-52. Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control? a. Competent and reliable personnel b. Assignment of responsibility c. Separation of duties d. Monitoring of controls Q5-53. All of the following are controls for cash received over the counter except a. the cash drawer should open only when the sales clerk enters an amount on the keys. b. the customer should be able to see the amounts entered into the cash register. c. the sales clerk must have access to the cash register tape. d. a printed receipt must be given to the customer. Q5-54. If a bookkeeper mistakenly recorded a $45 deposit as $54, the error would be shown on the bank reconciliation as a a. $9 deduction from the book balance. b. $9 addition to the book balance. c. $54 deduction from the book balance. d. $54 addition to the book balance. Q5-55. If a bank reconciliation included a deposit in transit of $780, the entry to record this reconciling item would include a. a debit to cash for $780. b. a credit to cash for $780. c. a credit to prepaid insurance for $780. d. Nothing, as no entry is required. Q5-56. Before paying an invoice for goods received on account, the controller or treasurer should ensure that a. the company is paying for the goods it ordered. b. the company has not already paid this invoice. c. the company is paying for the goods it actually received. d. all of the above are taken into account. Q5-57. Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements? a. Decreases assets and has no effect on net income b. Decreases net income and decreases assets c. Decreases owners' equity and increases liabilities d. Increases expenses and increases owners' equity Q5-58. Van Gogh Company uses the aging method to adjust the allowance for uncollectible ac- counts at the end of the period. At December 31, the balance of accounts receivable is $240,000 and the allowance for uncollectible accounts has a credit balance of $5,000 (before adjustment). An analysis of accounts receivable produced the following age groups: