VEVALSE IInasmal buiness, active ievolvement by the owner can be a practical substitute for the separation of me duties An effective system of intermal control reuires that individuals take periodic vacations AHonding means insuring a company against los due to employee theft. A system of internal control cannot be considered good until the possibility of human error has been completely eliminated 6 Proper control procedures can guarantee the prevention of theft. 7. Internal control involves, in part, the protection of a company's assets. 17. Separation of duties relates to a control activity in the accounting system. IN. Ii is unlikely that a company would want to bond its employees who handle cash or inventory. Good internal control dictates that one employee should oversee all related parts of a transaction. Bonding provides a guarantee against theft. 21 The degree of separation of duties varies with the size of the business. 23 The use of a cash register would be an example of a physical control. 38 At the end of each day, the cashier should be the one responsible for comparing the amount cash register tape with the day's cash additions to the cash register. l. Merchandising companies do not need as good a system of internal control as service cor A neliability of financial reportag compliance with relevant laws and regulations 4ainmeent of target sales 6 All of the following are examples of intermal control activities except A adequate supervision b rotation of key personnel customer satisfaction surveys d. insistence that employees take carned vaccations 7. Each of the following is a feature of internal control except management planning b. periodic independent verification c. limited access to assets d. authorization of transactions. a. 10. A result of a separation of duties is that A operations become extremely inefficient because of constant training of employees b. more employees will need to be bonded. c. theft by employees becomes impossible. d. theft is possible only if several employees scheme together 16. Which of the following is not an internal control activity for cash? a Unannounced audits of cash on hand should be made occasionally. b. The number of persons who have access to cash should be limited. c. The functions of recordkeeping and keeping custody of cash should be combined d. All cash receipts should be recorded promptly. 34. Which of the following would be added to the balance per bank? a Outstanding checks b. Bank service charges c. Collection of a note receivable by the bank d. Deposits in transit 35. A check for $236 is incorrectly recorded by the company as $263. On the bank reconciliation would appear as a deduction of $27 from the balance per books. b. appear as an addition of $27 to the balance per bank. appear as a deduction of $263 from the balance per books and an addition of S236 so the balance per bank. d. appear as an addition of $27 to the balance per books. a. c. ibon 75 erest eaed checking account would wwww.nad ton of S75 from the balance per books IS15o the balance per bank www. of S75o the balance Nr books an stment n the bank reconciliation w whch of the following emon should the appropriate amount be added to the halance per hank on a Iposit of S0 ded by the hank as S25 A pot o 323 econded by the bank as 250 C for $25 econded as $32 4Chk for $2 econded as $25 ANS A NAT BUSPROG Reflective Thinking STA AKPA N Measreme | ACBSP APC-1-Bank Reconciliation KEY Booms Application PIS 1 DIE Easy OBI LO 0s-03 &Explin apeme's espoilty as it pertains to internal control of a company MATCHING Indicate by letter the effect each bosiness pectice listed below has on a company's system of internal corol Anghes weakens oding of employees 2 Making all pa s with cash AKeeping nottion of key emplosees to a minim 4 ing prebered sales tikes S Limiting the ber of people who have access to cah 6 Combining the wwdkoeping and cstodianhip duties 2 The folloing infomation pertains to the bank transactions of Rawlins Company Ch cn the books as of Apil 30 was S499 Cash as shown on the bank statement for the same dae was SiLING A depoit of Ston represeting cash receipts as of Apeil 30, did not apppear on the bank Outstnng choks toaled S20 d Bank service charges for Apil amounted to S9 The hank collecd for Rawlins Company S840 (which includes S40 interest) on a note left for olletion An NSF check for S80 from a customer, Joe Beck, was returned with the statement Roquired IPrepare a hank reconciliation for Rawlins Company as of April 30. 2 State the amont of cash that would appear on the balance sheet as of April 30. VEVALSE IInasmal buiness, active ievolvement by the owner can be a practical substitute for the separation of me duties An effective system of intermal control reuires that individuals take periodic vacations AHonding means insuring a company against los due to employee theft. A system of internal control cannot be considered good until the possibility of human error has been completely eliminated 6 Proper control procedures can guarantee the prevention of theft. 7. Internal control involves, in part, the protection of a company's assets. 17. Separation of duties relates to a control activity in the accounting system. IN. Ii is unlikely that a company would want to bond its employees who handle cash or inventory. Good internal control dictates that one employee should oversee all related parts of a transaction. Bonding provides a guarantee against theft. 21 The degree of separation of duties varies with the size of the business. 23 The use of a cash register would be an example of a physical control. 38 At the end of each day, the cashier should be the one responsible for comparing the amount cash register tape with the day's cash additions to the cash register. l. Merchandising companies do not need as good a system of internal control as service cor A neliability of financial reportag compliance with relevant laws and regulations 4ainmeent of target sales 6 All of the following are examples of intermal control activities except A adequate supervision b rotation of key personnel customer satisfaction surveys d. insistence that employees take carned vaccations 7. Each of the following is a feature of internal control except management planning b. periodic independent verification c. limited access to assets d. authorization of transactions. a. 10. A result of a separation of duties is that A operations become extremely inefficient because of constant training of employees b. more employees will need to be bonded. c. theft by employees becomes impossible. d. theft is possible only if several employees scheme together 16. Which of the following is not an internal control activity for cash? a Unannounced audits of cash on hand should be made occasionally. b. The number of persons who have access to cash should be limited. c. The functions of recordkeeping and keeping custody of cash should be combined d. All cash receipts should be recorded promptly. 34. Which of the following would be added to the balance per bank? a Outstanding checks b. Bank service charges c. Collection of a note receivable by the bank d. Deposits in transit 35. A check for $236 is incorrectly recorded by the company as $263. On the bank reconciliation would appear as a deduction of $27 from the balance per books. b. appear as an addition of $27 to the balance per bank. appear as a deduction of $263 from the balance per books and an addition of S236 so the balance per bank. d. appear as an addition of $27 to the balance per books. a. c. ibon 75 erest eaed checking account would wwww.nad ton of S75 from the balance per books IS15o the balance per bank www. of S75o the balance Nr books an stment n the bank reconciliation w whch of the following emon should the appropriate amount be added to the halance per hank on a Iposit of S0 ded by the hank as S25 A pot o 323 econded by the bank as 250 C for $25 econded as $32 4Chk for $2 econded as $25 ANS A NAT BUSPROG Reflective Thinking STA AKPA N Measreme | ACBSP APC-1-Bank Reconciliation KEY Booms Application PIS 1 DIE Easy OBI LO 0s-03 &Explin apeme's espoilty as it pertains to internal control of a company MATCHING Indicate by letter the effect each bosiness pectice listed below has on a company's system of internal corol Anghes weakens oding of employees 2 Making all pa s with cash AKeeping nottion of key emplosees to a minim 4 ing prebered sales tikes S Limiting the ber of people who have access to cah 6 Combining the wwdkoeping and cstodianhip duties 2 The folloing infomation pertains to the bank transactions of Rawlins Company Ch cn the books as of Apil 30 was S499 Cash as shown on the bank statement for the same dae was SiLING A depoit of Ston represeting cash receipts as of Apeil 30, did not apppear on the bank Outstnng choks toaled S20 d Bank service charges for Apil amounted to S9 The hank collecd for Rawlins Company S840 (which includes S40 interest) on a note left for olletion An NSF check for S80 from a customer, Joe Beck, was returned with the statement Roquired IPrepare a hank reconciliation for Rawlins Company as of April 30. 2 State the amont of cash that would appear on the balance sheet as of April 30