Read the following statements about internal controls. Write down the number of each statement and whether the statement is true or false. If a statement is false, explain why. 1. Internal controls are not required when payments are made by cheque. 2. All payments should be made by cheque, except for petty cash payments. 3. A good internal control procedure is where the same person is responsible for paying all accounts, writing all cheques and signing all cheques. In order to be efficient, all employees should have direct access to 4. petty cash. 5. Bank reconciliation statements need only be drawn up every six months. 6. Cheque books should be kept in a locked safe as a preventive control. 7. A blank cheque can be signed to replenish the petty cash fund if it is handed to the custodian. B All cash receipts should be stored in the cash register and deposited at the end of the week, in order to make fewer trips to the bank. . Separation of duties is a vital part of internal control procedures. 0. Any employee of a business should be able to buy assets for the business. 1. Keeping personnel files in a locked filing cabinet is a corrective control. 2 To save time, the employer should ask the wage earners to keep a record of the time worked during the week and then pay them accordingly. E.If there is not enough money in petty cash, the custodian should take money from the cash register. Reconciling the cash journals with the bank statement may be classified as a f roceixing cash and paying cash. detective control.
Read the following statements about internal controls. Write down the number of each statement and whether the statement is true or false. If a statement is false, explain why. 1. Internal controls are not required when payments are made by cheque. 2. All payments should be made by cheque, except for petty cash payments. 3. A good internal control procedure is where the same person is responsible for paying all accounts, writing all cheques and signing all cheques. In order to be efficient, all employees should have direct access to 4. petty cash. 5. Bank reconciliation statements need only be drawn up every six months. 6. Cheque books should be kept in a locked safe as a preventive control. 7. A blank cheque can be signed to replenish the petty cash fund if it is handed to the custodian. B All cash receipts should be stored in the cash register and deposited at the end of the week, in order to make fewer trips to the bank. . Separation of duties is a vital part of internal control procedures. 0. Any employee of a business should be able to buy assets for the business. 1. Keeping personnel files in a locked filing cabinet is a corrective control. 2 To save time, the employer should ask the wage earners to keep a record of the time worked during the week and then pay them accordingly. E.If there is not enough money in petty cash, the custodian should take money from the cash register. Reconciling the cash journals with the bank statement may be classified as a f roceixing cash and paying cash. detective control.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:12 To save time, the employer should ask the wage earners to keep a record of
11. Keeping personnel files in a locked filing cabinet is a corrective control.
7. A blank cheque can be signed to replenish the petty cash fund if it is
6. Cheque books should be kept in a locked safe as a preventive control.
5. Bank reconciliation statements need only be drawn up every six months.
In order to be efficient, all employees should have direct access to
3. A good internal control procedure is where the same person is responsible
for paying all accounts, writing all cheques and signing all cheques.
2. All payments should be made by cheque, except for petty cash payments.
Read the following statements about internal controls. Write down the number
should be re
pared w
10. Any employee of a business should be able to buy assets for the business.
All cash receipts should be stored in the cash register and deposited at the
1. Internal controls are not required when payments are made by cheque.
of each statement and whether the statement is true or false. If a statement is
false, explain why.
pilferage and
red immed
or very expe
4.
petty cash.
items and th
e is reached
handed to the custodian.
he physical
8.
end of the week, in order to make fewer trips to the bank.
9. Separation of duties is a vital part of internal control procedures.
13.If there is not enough money in petty cash, the custodian should take
money from the cash register.
14. Reconciling the cash journals with the bank statement may be classined as a
detective control.
the time worked during the week and then pay them accordingly.
15. The same employee should be in charge of receiving cash and paying casi.
with the most appropriate item in Column B.
»Activity 4.2
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