Identify the correct option that does not indicate an example of internal control system.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 6, Problem 1QY

To determine

Identify the correct option that does not indicate an example of internal control system.

Expert Solution & Answer

Answer to Problem 1QY

The correct answer is option (b).

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Justification for correct answer: Cash deposits would be counted and hence, should be deposited daily, not weekly. Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.

Justification for incorrect answers:

Option (a) is incorrect because segregation of duties is an example of internal control system.
Option (c) is incorrect because authorizing the control of petty cash fund to a single employee is an example of internal control system.
Option (d) is incorrect because pre numbered checks is example of internal control system.
Option (e) is incorrect because endorsement of check before depositing is an example of internal control system.

Conclusion

Therefore, option (b) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Which of the following is NOT an example of an internal control system? Select one: a )Prenumber checks b)Maintain separate duties between cash handling and cash recording c)Keep petty cash locked up and under one person’s control D)Make weekly deposits

Which of the following controls will help prevent skimming? a. The accounts receivable bookkeeper’s duties are separated from preparing the bank deposit b. The accounts receivable bookkeeper has access to collections from customers. c. The accounts receivable bookkeeper is responsible for preparing the bank deposit. d. The accounts receivable bookkeeper makes all entries in the cash receipts book.

Which of the following is not an example of control procedures to safeguard cash received from accounts receivables? A.All receipts of cash should be recorded in the cash acount B.Employees keep records of all the receipts,with details of the amount received C.One employee is in charge of receiving cash and another employee in charge of preparing accouting records D.One employee should be responsible for collecting and banking cash receipts on a daily basis

Answer 2

Question

Chapter 6, Problem 1QY

To determine

Identify the correct option that does not indicate an example of internal control system.

Expert Solution & Answer

Answer to Problem 1QY

The correct answer is option (b).

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Justification for correct answer: Cash deposits would be counted and hence, should be deposited daily, not weekly. Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.

Justification for incorrect answers:

Option (a) is incorrect because segregation of duties is an example of internal control system.
Option (c) is incorrect because authorizing the control of petty cash fund to a single employee is an example of internal control system.
Option (d) is incorrect because pre numbered checks is example of internal control system.
Option (e) is incorrect because endorsement of check before depositing is an example of internal control system.

Conclusion

Therefore, option (b) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1QY

To determine

Identify the correct option that does not indicate an example of internal control system.

Expert Solution & Answer

Answer to Problem 1QY

The correct answer is option (b).

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Justification for correct answer: Cash deposits would be counted and hence, should be deposited daily, not weekly. Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.

Justification for incorrect answers:

Option (a) is incorrect because segregation of duties is an example of internal control system.
Option (c) is incorrect because authorizing the control of petty cash fund to a single employee is an example of internal control system.
Option (d) is incorrect because pre numbered checks is example of internal control system.
Option (e) is incorrect because endorsement of check before depositing is an example of internal control system.

Conclusion

Therefore, option (b) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1QY

To determine

Identify the correct option that does not indicate an example of internal control system.

Expert Solution & Answer

Answer to Problem 1QY

The correct answer is option (b).

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Justification for correct answer: Cash deposits would be counted and hence, should be deposited daily, not weekly. Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.

Justification for incorrect answers:

Option (a) is incorrect because segregation of duties is an example of internal control system.
Option (c) is incorrect because authorizing the control of petty cash fund to a single employee is an example of internal control system.
Option (d) is incorrect because pre numbered checks is example of internal control system.
Option (e) is incorrect because endorsement of check before depositing is an example of internal control system.

Conclusion

Therefore, option (b) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1QY

To determine

Identify the correct option that does not indicate an example of internal control system.

Expert Solution & Answer

Answer to Problem 1QY

The correct answer is option (b).

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Justification for correct answer: Cash deposits would be counted and hence, should be deposited daily, not weekly. Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.

Justification for incorrect answers:

Option (a) is incorrect because segregation of duties is an example of internal control system.
Option (c) is incorrect because authorizing the control of petty cash fund to a single employee is an example of internal control system.
Option (d) is incorrect because pre numbered checks is example of internal control system.
Option (e) is incorrect because endorsement of check before depositing is an example of internal control system.

Conclusion

Therefore, option (b) is correct answer.

Answer 6

Chapter 6, Problem 1QY

To determine

Identify the correct option that does not indicate an example of internal control system.

Expert Solution & Answer

Answer to Problem 1QY

The correct answer is option (b).

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Justification for correct answer: Cash deposits would be counted and hence, should be deposited daily, not weekly. Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.

Justification for incorrect answers:

Option (a) is incorrect because segregation of duties is an example of internal control system.
Option (c) is incorrect because authorizing the control of petty cash fund to a single employee is an example of internal control system.
Option (d) is incorrect because pre numbered checks is example of internal control system.
Option (e) is incorrect because endorsement of check before depositing is an example of internal control system.

Conclusion

Therefore, option (b) is correct answer.

Answer 7

Chapter 6, Problem 1QY

To determine

Identify the correct option that does not indicate an example of internal control system.

Answer 8

Expert Solution & Answer

Answer to Problem 1QY

The correct answer is option (b).

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Justification for correct answer: Cash deposits would be counted and hence, should be deposited daily, not weekly. Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.

Justification for incorrect answers:

Option (a) is incorrect because segregation of duties is an example of internal control system.
Option (c) is incorrect because authorizing the control of petty cash fund to a single employee is an example of internal control system.
Option (d) is incorrect because pre numbered checks is example of internal control system.
Option (e) is incorrect because endorsement of check before depositing is an example of internal control system.

Answer 12

Conclusion

Therefore, option (b) is correct answer.

Answer 13

Ch. 6 - Prob. 1QY Ch. 6 - Prob. 2QY Ch. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QY Ch. 6 - Prob. 6QY Ch. 6 - Prob. 7QY Ch. 6 - Prob. 8QY Ch. 6 - Prob. 1DQ Ch. 6 - Prob. 2DQ

Identify the correct option that does not indicate an example of internal control system.

Identify the correct option that does not indicate an example of internal control system.

Answer to Problem 1QY

Explanation of Solution

Want to see more full solutions like this?

Chapter 6 Solutions