Short Answer 1. What are the functions of the internal control? 2. Why should the employee who handles cash receipts not have the responsibility for maintaining the accounts recelvable records? Explain. 3. How are cash equivalents reported in the financial statements? 4. What are some examples of cash equivalents? 5. Discuss the importance of a company having proper insurance and bonding its employees. 6. What is the purpose of preparing a bank reconciliation? 7. There are three employees in the accounting department: payroll clerk, accounts payable clerk, and accounts recelvable clerk. Which one of these employees should not make the daily deposit? 8. The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference