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11.              Each of the following a feature of internal control,

Question : 11.              Each of the following a feature of internal control, : 1410856

 

 

11.              Each of the following is a feature of internal control, except

a.

management planning.

b.

periodic independent verification.

c.

limited access to assets.

d.

authorization of transactions.

 

 

 

12.              Which of the following attributes of internal control would be violated if the chief accounting clerk wrote checks to pay accounts payable?

a.

Adequate design of documents

b.

Sound personnel procedures

c.

Periodic independent verification

d.

Separation of duties

 

 

 

13.              The bonding of employees is an example of which feature of a good system of internal control?

a.

Authorization of transactions

b.

Sound personnel policies

c.

Separation of duties

d.

Limited access to assets

 

 

 

14.              Which of the following would not be found in a good system of internal control?

a.

Requiring all employees to take earned vacations

b.

Establishing a system of checks and balances

c.

Having one person handle all the responsibilities of a department

d.

Establishing an internal audit staff

 

 

 

15.              A consequence 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 when several employees are involved.

 

 

 

16.              A very small company would have the most difficulty in implementing which of the following internal control activities?

a.

Sound personnel procedures

b.

Periodic independent verification

c.

Limited access to assets

d.

Separation of duties

 

 

 

17.              Internal control is weakened by all of the following, except

a.

collusion.

b.

separation of duties.

c.

human error.

d.

effects of changing conditions.

 

 

 

18.              In a small business, because it is often cost-prohibitive to hire extra employees, the lack of certain separations of duties can best be overcome by

a.

bonding the employees.

b.

getting the owner actively involved.

c.

hiring only honest employees.

d.

holding one person responsible for a given set of transactions.

 

 

 

19.              Which of the following is not an internal control activity for cash?

a.

Surprise 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.

 

 

 

20.              Which of the following documents is mailed to the vendor (seller) of goods?

a.

Receiving report

b.

Invoice

c.

Purchase order

d.

Purchase requisition

 

 

 

 

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