An example of a preventive control is a. a single person handles the responsibilities for operations, custody of assets, and b. bonding employees who handle cash c. separation of the Purchasing Department and Accounting Department personnel d accepting payment in currency only 16. A 60 day, 12percentage note for dollar7.000, dated April 15, is received from a customer on account. The face value of the a. dollar7,000 b. dollar6.860 c. dollar7.840 d dollar7, 140 17. Which of the following insist an internal control activity for cash? a. All cash receipts should be recorded promptly. b. The functions of record keeping and maintaining custody of cash should be combined. c. The number of persons who have access to cash should be limited. d Surprise audits of cash on hand should be made occasionally. 18. cash account in the company's ledger is) a. liability with a credit balance b. asset with a credit balance c asset with a debit balance d, liability with a debit balance 19. On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were S20,000 face value and 6percentage interest. On October 30, the entry to record the collection of the note should include a a. debit to Interest Receivable fordollar300 b. debit to Notes Receivable for dollar20,000 c, credit to Interest Revenue for dollar300 d. credit to Notes Receivable for dollar20, 300 20, Credit memos from the bank a. decrease a bank customers account b. are used to show a bank service charge c. show the bank has collected a note receivable for the customer d show that a company has deposited a customers NSF check 21. Which of the following items that appeared on the bank reconciliation did mot require an adjusting entry? a. A check for dollar630, recorded in the check register for dollar360. b, NSF checks c deposits in transit d bank service charges 22. Journal entries based on the bank reconciliation are required in the company's accounts for a. outstanding checks b. deposits in transit c, book errors d bank errors