(Multiple Choice)
1. All of the following are objectives of internal control except
a. To safeguard assets
b. To maximize net income
c. To ensure accurate and reliable accounting records
d. To comply with legal requirements

2. All of the following are internal control procedures except
a. Electronic devices
b. Assignment of responsibilities
c. Internal and external audits
d. Sarbanes-Oxley reforms

3. Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control?
a. Monitoring of controls
b. Competent and reliable personnel
c. Assignment of responsibility
d. Separation of duties

4. All of the following are controls for cash received over the counter except
a. The customer should be able to see the amounts entered into the cash register.
b. The cash drawer should open only when the sales clerk enters an amount on the keys.
c. The sales clerk must have access to the cash register tape.
d. A printed receipt must be given to the customer.

5. In a bank reconciliation, an outstanding check is
a. deducted from the bank balance.
b. deducted from the book balance.
c. added to the bank balance.
d. added to the book balance.

6. In a bank reconciliation, a bank collection of a note receivable is
a. deducted from the book balance.
b. deducted from the bank balance.
c. added to the bank balance.
d. added to the book balance.