1. Which of the following reflects strong internal control?

   a.Physical inventory counts are not performed because the company uses a perpetual inventory system.

   b.The person who opens the mail also makes the journal entry to record any customer payments received by mail.

   c.It takes two days to get a cheque written because of the approvals required.

2. The employee who prepares company cheques also signs those cheques. What can be said of this procedure?

   a.It is a good example of checks on recorded amounts.

   b.It violates adequate documents and records.

   c.It is a good example of clearly defined authority and responsibility.

   d.It violates proper segregation of duties.

   d.A company ships goods to customers right before year-end even though the customers have not ordered them.