Read the following statements about internal controls. Write down the numberof each statement and whether the statement is true or false. If a statement isfalse, explain why.thehysical stockta1. Internal controls are not required when payments are made by cheque.2. All payments should be made by cheque, except for petty cash payments.A good internal control procedure is where the same person is responsibleed with thee reportedfor paying all accounts, writing all cheques and signing all cheques.4. In order to be efficient, all employees should have direct access to3.and loss.petty cash.Bank reconciliation statements need only be drawn up every six months.1)diately.7. A blank cheque can be signed to replenish the petty cash fund if it ishanded to the custodian.5.6. Cheque books should be kept in a locked safe as a preventive control.9. Separation of duties is a vital part of internal control procedures.10. Any employee of a business should be able to buy assets for the business.11. Keeping personnel files in a locked filing cabinet is a corrective control.12 To save time, the employer should ask the wage earners to keep a record ofthe time worked during the week and then pay them accordingly.be1.8 All cash receipts should be stored in the cash register and deposited at theend of the week, in order to make fewer trips to the bank.14. Reconciling the cash journals with the bank statement may be classified as adetective control.13.If there is not enough money in petty cash, the custodian should takemoney from the cash register.15. The same employee should be in charge of receiving cash and paying cash.andpensive itemhese item

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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 emplo 4.

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 emplo 4.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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