Question 56

1 points

Save

Outstanding checks are checks that have been issued but have NOT cleared the bank.

	True
	False

Question 57

1 points

Save

Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

	True
	False

Question 58

1 points

Save

Accompanying the bank statement was a debit memorandum for bank service charges. What adjustment is required in the depositor's accounts?

		Increase Miscellaneous Expense; decrease Cash
		Increase Cash; increase Other Income
		Increase Cash; increase Accounts Payable
		Decrease Accounts Payable; decrease Cash

Question 59

1 points

Save

For a strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.

	True
	False

Question 60

1 points

Save

Bank customers are considered owners of the bank so the bank shows their accounts as an asset on the bank's records.

	True
	False

Question 61

1 points

Save

If a business has several bank accounts, it has a separate record for each of them.

	True
	False

Question 62

1 points

Save

Which of the following elements of internal control focuses upon locating weaknesses and improving control effectiveness?

		The control environment
		Risk assessment
		Control procedures
		Monitoring

Question 63

1 points

Save

Which of the following should NOT be considered cash by an accountant?

		Money orders
		Bank checking accounts
		Postage stamps
		Travelers' checks

Question 64

1 points

Save

The depositor reconciles the bank's statement to the depositor's records.

	True
	False