ACC 201 Chapter 7 Review

1.Which one of the following is not an objective of a system of internal controls? A.Safeguard company assetsB.Overstate liabilities in order to be conservativeC.Enhance the accuracy and reliability of accounting records.D.Reduce the risks of errors.2.All of the following are examples of internal control procedures exceptA.Insistance that employees take vacationsB.using prenumbered documents.C.reconciling the bank statementD.customer satisfaction surveys.3.Internal controls are concerned withB. Safegaurding Assets4. From an internal control standpoint, the asset most susceptible to improper diversion and use isA. BuildingsB. LandC. Prepaid InsuranceD. Cash4.L5.A very small company would have the most difficulty in implementing which of the following internal control activities?A.limited access to assetsB.separation of duties6.Two individuals at a retail store work the same cash register. You evaluate this situation asA.A violation of separation of dutiesB.A violation of establishment fdfdfd7.Joe is a warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates Segragation of duties is violated. 8.Which of the following would not be included in the definition of cash?A.NSF checks9.A company maintains the asset account, Cash in Bank, on its books, while the bank maintains a reciprocal account that isA.A liability account10. A NSF check should appear in which section of the bank reconciliation? Deduction from the balance per books11. Which of the following would be deducted from the balance per books on a bank

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