MCQs from Accounting PrinciplesInternal control

MCQs from Accounting PrinciplesInternal control

1. Which one of the following is not an objective of a system of internal controls? 2. Internal controls are concerned with . 3. Internal control is defined, in part, as a plan that safeguards . 4. Having one person post entries to accounts receivable subsidiary ledger and a different person . 5. Having one person responsible for the related activities of ordering merchandise, receiving . 6. The custodian of a company asset should . 7. When two or more people get together for the purpose of circumventing prescribed controls, it is called . 8. From an internal control standpoint, the asset most susceptible to improper diversion and use is . 9. The principle of establishing responsibility does not include . 10. The control principle related to not having the same person authorize and pay for goods is known as . 11. Two individuals at a retail store work the same cash register; this situation can be evaluated as . 12. An accounts payable clerk also has access to the approved supplier master file for purchases. The control principle of . 13. is responsible for establishing a system of internal control. 14. The independent internal verification principle involves each of the following except the of data prepared by other employees. 15. Jolene is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates . 16. The extent of internal control features adopted by a company must be evaluated in terms of cost-benefit: true or false? If false, why? 17. Physical controls to safeguard assets do not include . 18. In large companies, the independent internal verification procedure is often assigned to. 19. Maximum benefit from independent internal verification is obtained when . 20. If employees are bonded . 21. A system of internal control . 22. Allowing only designated personnel to handle cash receipts is an example of . 23. Control over cash disbursements is generally more effective when . 24. Reconciling the bank statement monthly is an example of . 25. Allowing only the treasurer to sign checks is an example of .


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