indicate whether the following statements are TRUE OR FALSE.

[ Select ] ["FALSE", "TRUE"] 1. A properly designed internal control system is a key part of accounting information systems design, analysis, and performance.

[ Select ] ["FALSE", "TRUE"] 2. The use of internal controls provides guaranteed protection against losses due to operating activities.

[ Select ] ["FALSE", "TRUE"] 3. Internal control policies and procedures are the same for all companies.

[ Select ] ["FALSE", "TRUE"] 4. Proper internal control means that the responsibility for a task is clearly established and assigned to one person.

[ Select ] ["FALSE", "TRUE"] 5. Bonding does not discourage employees from stealing from the company as employees know that bonding is an insurance policy against loss from theft.

[ Select ] ["FALSE", "TRUE"] 6. Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.

[ Select ] ["TRUE", "FALSE"] 7. Once a good system of internal control is in place, it rarely needs review.

[ Select ] ["TRUE", "FALSE"] 8. Technologically advanced accounting systems do not need monitoring for errors because computers always process transactions correctly.

[ Select ] ["FALSE", "TRUE"] 9. Two important limitations of internal control systems are (1) human error or human fraud and (2) cost-benefit.

[ Select ] ["TRUE", "FALSE"] 10. Collusion is when a person embezzles money from a company and tries to hide the evidence.

[ Select ] ["FALSE", "TRUE"] 11. Separation of duties divides responsibility for a transaction or a series of transactions between two or more individuals or departments. Separation of duties reduces the risk of error and fraud.

[ Select ] ["TRUE", "FALSE"] 12. Liquidity refers to a company's ability to pay its short-term obligations.

[ Select ] ["TRUE", "FALSE"] 13. Money orders, cashier's checks, and certified checks are examples of cash equivalents.

[ Select ] ["TRUE", "FALSE"] 14. The payee is the person who signs a check and authorizes payment.

[ Select ] ["TRUE", "FALSE"] 15. On a bank statement, deposits are listed as debits because the bank increases its cash account when the deposit is made.