Internal controls are most effective when:

Question 2 options:

the organization is constantly changing.

employees at all levels adopt the goals and objectives of the organization.

the only asset a company has is cash.

collusion is possible.

The employee who processes cash payments should have nothing to do with the approval process. This is a part of which characteristic of internal control?

Question 3 options:

competent, reliable, and ethical personnel

assignment of responsibilities

separation of duties

proper authorization

All of the following are documents used to control a bank accountexcepta(n):

Question 4 options:

deposit ticket.

bank reconciliation.

invoice.

signature card.

Which of the following describes thecontrol environment?

Question 5 options:

A company must identify its risks.

The control environment is the "tone at the top" of the business.

Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate.

The control environment is designed to ensure that the business's goals are achieved.

Which of the following would be a reconciling item on the bank side of the reconciliation?

Question 6 options:

collection of note receivable for $1,000

service fee of $20

non-sufficient funds cheque for $75

bank recorded a $2,000 deposit as $200

f before reconciliation the balance on the bank statement doesnotequal the balance in the company's cash account:

Question 8 options:

the bookkeeper made a mistake.

the bank made a mistake.

both the bank and the bookkeeper made a mistake.

It is perfectly normal for the two balances to be different.

Interest expense appears on a bank reconciliation as a(n):

Question 10 options:

addition to the book balance.

addition to the bank balance.

deduction from the book balance.

deduction from the bank balance.

A bank service charge appears on a bank reconciliation as a(n):

Question 11 options:

deduction from the book balance.

addition to the bank balance.

deduction from the bank balance.

addition to the book balance.

If the petty cash fund isnotreplenished on the balance sheet date:

Question 13 options:

liabilities will be understated.

cash will be understated.

income will be understated.

cash and income will be overstated.

A petty cash fund, established with a $225 balance, had the following petty cash tickets and $14 in cash:

Question 14 options:

See photo attaced

Cash is the first asset listed on the balance sheet because it is:

Question 15 options:

the most liquid asset.

subject to theft.

valuable.

subject to errors.

A petty cash fund was established with a $400 balance. It currently has cash of $9 and petty cash tickets as shown below.

Travel expense $120Office supplies $200Equipment rental expense $70The journal entry to replenish the account would be which of the following?

Question 16 options:

credit Petty Cash for $1

credit Cash Short & Over for $1

debit Petty Cash for $1

debit to Cash Short & Over for $1