TRUE-FALSE

____1. Use of subsidiary ledgers makes related general ledger control accounts

unnecessary.

____ 2. A significant advantage of special journals is the labor savings resulting

from adding the effects of like entries before posting them to related accounts.

____ 3. If the Arden Company uses special journals, it should record the purchase

of operating equipment for cash in the invoice register (purchases journal).

____4. Both accounting controls and administrative controls are components of an

internal control system.

____5 Good internal control requires that the same person should NOT have both the

responsibility for a given function and the authority to perform that function.

____6 Requiring employees to take vacations is an example of an internal control

feature.

____7 A petty cash fund should be large enough so that it does not need to be

replenished more than once a year.

____8 The journal entry to reimburse a petty cash fund does not involve either a debit

or a credit to the Petty Cash account.