Question 1

Having different individuals receive cash, record cash receipts, and hold the cash is an example of

Accepted Answer

A)  establishment of responsibility.
B)  segregation of duties.
C)  documentation procedures.
D)  independent internal verification.

Question 2

From an internal control standpoint, the asset most susceptible to improper diversion and use is

Accepted Answer

A)  prepaid insurance.
B)  cash.
C)  buildings.
D)  land.

Question 3

Control over cash disbursements is generally more effective when

Accepted Answer

A)  all bills are paid in cash.
B)  disbursements are made by the accounts payable subsidiary clerk.
C)  payments are made by check.
D)  all purchases are made on credit.

Exam 10: Internal Control and Cash

From an internal control standpoint, the asset most susceptible to improper diversion and use is

Correct Answer
verified

Control over cash disbursements is generally more effective when

Correct Answer
verified

Having different individuals receive cash, record cash receipts, and hold the cash is an example of

Correct Answer
verified

Exam 10: Internal Control and Cash

From an internal control standpoint, the asset most susceptible to improper diversion and use is

Correct AnswerverifiedShow Answer

Control over cash disbursements is generally more effective when

Correct AnswerverifiedShow Answer

Having different individuals receive cash, record cash receipts, and hold the cash is an example of

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified