Option B is the answer | |
Internal controls are the methods put forward by the management to promote the accountability, meet targets and increase the efficiency. Usage of bank account is not a limitation |
Question 1 Which of the following is not a limitation of internal control? the size of...
Novak Corporation sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2018: Coffee Bean Units Unit Cost Net Realizable Value Coffea arabica 11,700 bags $5.60 $5.55 Coffea robusta 5,700 bags 3.40 3.50 Inventory at the lower of cost and net realizable value $ 84315 Prepare any journal entry required to record the LCNRV, assuming that Novak uses a perpetual inventory system. (Round answer to the nearest whole dollar,...
Which of the following is an internal control for checks received through the mail? Multiple Choice ) The accounting department counts the cash, prepares the deposit slip and deposits the cash in the bank. O The mai es gives che The mail clerk gives checks to the person who makes the bank deposit. The accounting department register with the cash count sheet. The Cashier prepares a journal quantity sold, and cash received. Comparing the cash in the register with the...
Which of the following is an element of internal control? Select one: O A. Control environment O B. Control procedures O C. None of the above O D. All of the above
When a firm uses internal auditors, it is adhering to which of the following internal control elements? a.monitoring b.proofs and security measures c.risk assessment d.information and communication Hint(s) The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $32,110. Cash balance according to the bank statement at July 31, $31,350. Checks outstanding, $2,870. Deposits in transit, not recorded by bank, $4,150. A check...
Question 2 1 pts Which of the following statements is false? Internal control includes the procedures and actions to: ensure that net income increases each year. O protect assets against theft and waste. O evaluate the performance of company personnel o ensure that company policies are being followed. D Question 3 1 pts Mechanical devices such as check protectors, cash registers, and time clocks, serve as: only symbolic warnings to potential white collar criminals. O ineffective control devices because they...
Wong has the following internal controls over cash receipts and cash payments. Identify the control activity that is applicable to each item in the table shown below: All cash is deposited intact, in the bank account, daily. Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls Blank cheques are stored in a safe in the controller’s office. Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls All cashiers...
Principles of auditing ch 8 Internal Controls QUESTION 10 Which of the following elements is not a part of an entity's internal controls? A. Information and communication systems support. B. Control risk. C. Control activities. D. The control environment. QUESTION 11 Which of the following is the correct order for performing the procedures noted? A. Perform substantive tests, test controls, understand the system of internal control. B. Test controls, understand the system of internal control, perform substantive tests. C. Test...
Which of the following are elements of a CPA firm's quality control that should be considered in establishing its quality control policies and procedures? Human Resources Yes Yes No Yes Monitoring O 1. O 2. 03. O 4. Yes Yes Yes No No Yos Yes Yes
Which of the following elements of internal control focuses on locating weaknesses and improving control effectiveness? a. Control environment b. Risk assessment c. Monitoring d. Control procedures
ACCT2110 Financial Accounting Chapter Seven Internal Control and Cash Homework Problem 1. The following control procedures are used at Feliz Company fo 1. All over-the-counter receipts are registered by four clerks who use a cash register with a single cash d r over-the-counter cash receipts 2. To minimize the risk of robbery, cash in excess of $200 is stored in an unlocked drawer in a desk in th . Each clerk counts his/her own receipts at the end of the...