Chapter # MULTIPLE CHOICE QUESTIONS Internal control is defined, in part, as a plan that safeguards a. all balance sheet accounts. b. assets. c. liabilities d. capital stock. 1. 2. In large companies, the independent internal verification procedure is often assigned to a. computer operators b. management. c. internal auditors. d. outside CPAs. 3. If employees are bonded it means that they are not allowed to handle cash. they have worked for the company for at least 10 years they have been insured against misappropriation of assets. a. b. c. d. it is impossible for them to steal from the company 4. Checks received through the mail should immediately be endorsed "For Deposit Only a. b. be sent to the accounts receivable subsidiary ledger clerk for immediate posting to the customer's account. c. be cashed at the bank as soon as possible. d. be "rung up" on a cash register immediately 5. The daily cash count of cash register receipts made by department supervisors is an example of a. other controls. b. independent internal verification. c. establishment of responsibility. d. segregation of duties. 6. An exception to disbursements being made by check is acceptable when cash is paid a. to an owner b. to employees as wages. c. from petty cash. d. to employees as loans. The entry to replenish a petty cash fund includes a credit to a. Petty Cash. b. Cash. c. Freight-in. d. Postage Expense. 7