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

Question

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Answer 1

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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.

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Students have asked these similar questions

RK Co. sells snowboards. Each snowboard requires direct materials for $140, direct labor for $55, and variable overhead of $64. The company expects fixed overhead costs of $673,000 and fixed selling and administrative costs of $160,000 for the next year. It expects to produce and sell 11,900 snowboards in the next year. What will be the selling price per unit if RK uses a mark-up of 17% of the total cost?

SP Company made sales of $32,750 million in 2019. The cost of goods sold for the year totaled $12,500 million. At the end of 2018, Malt's inventory stood at $1,300 million, and SP ended 2018 with an inventory of $1,800 million. Compute Malt's gross profit percentage and rate of inventory turnover for 2019.

The company's total assets are

Answer 2

Question

100%

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.

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Answer 3

Question

100%

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.

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Answer 4

Question

100%

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.

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Answer 5

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Answer 6

Question

100%

Answer 7

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 8

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 9

Chapter 6, Problem 1QY

To determine

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

Answer 10

Expert Solution & Answer

Answer to Problem 1QY

The correct answer is option (b).

Answer 11

Expert Solution & Answer

Answer 12

Expert Solution & Answer

Answer 13

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 14

Conclusion

Therefore, option (b) is correct answer.

Answer 15

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

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Chapter 6 Solutions