Question

Saved LeBaron Corporation receives most payments by mail. When the payments are received in the mail, they are opened by two employees who stamp the checks “For Deposit Only” and make a list of the checks received. The list and the checks are then forwarded to the treasurer who has the responsibility to deposit the checks at First National Bank. These procedures are an example of which preventive control?

Question 1 options: Proper authorization. Physical controls. Separation of duties. E-commerce controls.

Question 2 (1 point) LeBaron Corporation has a policy that any expenditure over $1,000 requires the general manager to review the expenditure and give her OK for the purchase to be made. This procedure is an example of which preventive control?

Question 2 options: Separation of duties. E-commerce controls. Physical controls. Proper authorization.

Question 3 (1 point) LeBaron Corporation was notified of an NSF (nonsufficient funds) check from a customer. When preparing the bank reconciliation, what should LeBaron do with the NSF check?

Question 3 options: Subtract the NSF check from the bank balance. Add the NSF check to their cash balance. Add the NSF check to the bank balance. Subtract the NSF check from their cash balance.

Answer 1

Answer 1 segregation of duties

Answer 2 proper Authorization

Answer 3 subtract the NSF check from the bank balance