Exam 8: Cash and Internal Control

As the controller of a large company,you notice that the Cash Short or Over account is consistently debited for fairly large sums of cash when the petty cash fund is replenished.You probably will want to

A system of internal control cannot be considered good until the possibility of human error has been completely eliminated.

The amount in the petty cash fund plus the sum of the petty cash vouchers should at all times equal the amount shown in the Petty Cash account.

Which of the following would be added to the balance per bank?

The use of prenumbered documents is important to a good system of internal control.

The receiving department must compare goods received with goods purchased,as indicated on the purchase order.

Which of the following would be added to the balance per books on a bank reconciliation?

The Sarbanes-Oxley Act has succeeded in

Each of the following is a feature of internal control except

An effective system of internal control centralizes functions in a single,capable individual.

When a petty cash fund is replenished,the entry requires a debit to Petty Cash.

A company's merchandise inventory includes all of the following,except

Management is responsible for establishing a satisfactory system of internal control.

All of the following are examples of internal control activities except

When an individual uses a debit card to make a purchase,the amount of the purchase is deducted directly from the individual's bank account.

In a purchase system,the most appropriate department to control goods upon arrival at the company is the

Under an effective system of internal control,errors occur only as a result of fraud or dishonesty.

On a balance sheet,what items normally are included in Cash?

On a bank reconciliation,$75 interest earned on a checking account would

In a small business,active involvement by the owner can be a practical substitute for the separation of some duties.