1. Which of the complying with is not among the policies and also procedures that comprise an internal control system?

C. Insurance a return to investors.

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2. Managers ar a high priority on internal manage systems due to the fact that the systems assist managers in all of the following except:

E. Assuring the no loss will occur.

3. Principles of internal regulate include all of the following except:

B. Preserving security by having actually one human being track and also record assets.

4. A appropriately designed internal regulate system:

A. Lowers the company’s risk of loss.

5. 2 clerks sharing the same cash register is a violation of i beg your pardon internal regulate principle?

A. Develop Responsibilities

6. I m sorry internal manage principle prescribes the usage of pre-numbered printed checks?

B. Keep adequate records

7. Internal manage policies and also procedures have actually limitations no including:

E. Developing Responsibilities

8. Internal manage systems are:

D. Required by Sarbanes-Oxley (SOX) to be documented and also certified if the company’s share is traded on one exchange (a public company).

9. Cash equivalents:

A. Are short-term, extremely liquid investment assets.

10. Cash equivalents:

C. Are conveniently converted come a known cash amount.

13. Basic bank services perform not include:

E. Petty cash management

14. The three parties associated with a examine are:

B. The maker, the payee, and the bank

15. A financial institution statement provided by the financial institution includes:

C. The beginning and also the ending balance that the depositor’s account.

16. A financial institution does not concern a debit memorandum to educate the depositors if i beg your pardon of the following?

E. A deposit to their account.

17. The number of day’s sales uncollected:

A. Is used to advice the liquidity of receivables.

18. The number of day’s sales uncollected is offered to:

D. Estimate how much time is likely to pass prior to the current amount of account receivable is received in cash.

19. All of the complying with are true that the variety of day’s sales uncollected ratio except:

A. Is most efficient in assessing the cash sales of a company.

22. An income statement account that is supplied to document cash overages and also cash shortages developing from small cash transactions or indigenous errors in making change is titled:

D. Cash over and short

23. Internal manage procedures for cash receipts do not need that:

B. Every collections because that sales are received automatically upon make the sales.

24. The cash over and short account:

B. Is offered to record the income results of errors in making adjust and/or processing petty cash transactions.

25. A voucher is an internal file or file:

C. Used to accumulate details needed to manage cash disbursements and to ensure that transactions are appropriately recorded.

26. Which of the complying with procedures would weaken manage over cash receipts that arrive with the mail?

C. For safety, just one human should open the mail, and also that person should immediately deposit the cash received in the bank.

27. At the finish of the day, the cash it is registered tape mirrors $1,000 in cash sales but the counting of cash in the register is $1,010. The ideal entry to account for this overabundance is:

C. Debit Cash $1,010; credit Sales $1,000; credit transaction Cash Over and also Short $10.

28. A an essential factor in a voucher system includes all of the adhering to except:

E. That is not vital if the supplier provides both receiving report and invoice v the merchandise shipped.

29. Spencer Co. Decides to create a petty cash fund with a start balance of $200. The company decides that any purchases under $25 can be processed with petty cash instead of the voucher system. The newspaper entry come record developing the account is:

C. Debit small Cash $200 and also Credit Cash $200.

30. The entrance to document reimbursement of the small cash money for postage expense should include:

A. A debit come Postage Expense.

31. As soon as a small cash fund is in use:

A. Costs paid with petty cash room recorded once the money is replenished.

32. Once reimbursing the small cash fund:

D. Ideal expense accounts space debited.

34. A agency wants come decrease its $200 petty cash money to $175. The entry to mitigate the money is:

B. Debit come Cash $25; credit to petty Cash $25.

35. On a bank reconciliation, an unrecorded debit memorandum because that printing checks is:

C. Deducted native the book balance the cash.

36. A debit memorandum ~ above a bank statement indicates:

C. A diminish in the bank’s legal responsibility account.

38. An evaluation that explains differences in between the check account balance according to the depositor’s records and the balance report on the financial institution statement is a(n):

B. Bank reconciliation

39. Top top a bank reconciliation, the amount of one unrecorded financial institution service charge must be:

B. Deducted native the book balance of cash.

40. If a check that was superior on critical period’s financial institution reconciliation to be not amongst the cancelled checks went back by the bank this period, in prepare the period’s reconciliation, the amount of this check should be:

D. Deducted native the financial institution balance that cash as an exceptional check.

41. If a examine correctly written and paid by the financial institution for $749 is erroneously recorded in the company’s books for $794, exactly how should this error be cure on the bank reconciliation?

D. Include $45 to the book balance.

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45. A seller (or provider) of items or services to a service organization is recognized as a:

A. Vendor

46. The internal file prepared through a room manager that notifies the purchasing department of that is merchandise it is in purchased is the:

A. Acquisition Requisition

47. The itemized declare of items prepared by a merchant listing the customer’s name, items sold, sales prices, and also terms the the sale is dubbed the:

C. Invoice

48. The internal paper prepared to inform the proper persons that items ordered have actually been received, relenten the quantities and condition the the items is the:

D. Receiving Report

49. A voucher device is a set of procedures and approvals:

E. Designed to control cash disbursements and the accept of obligations.

50. Inner controls are critical to suppliers that transform from the U.S. GAAP come IFRS due to the fact that of every one of the following risks except: