Question

6) Campaign Services hired a new accounting manager. He signed a contract for 6) a new accounting information system, but his position did not specify whether he was authorized to do so or not. In the above situation, which internal control procedure needs strengthening? A) separation of duties B) documents C) competent, reliable, and ethical personnel D) assignment of responsibilities 7) 7) A deposit receipt is A) retained by the customer as proof of a deposit transaction B) used by the bank as an alternative to a remittance advice C) given by the customer to the bank as a proof of deposit D) the same as a signature card 8) 8) The petty cash fund had an initial imprest balance of $200. It currently has $17 in cash, $5 in miscellaneous cash receipts, and an additional $173 in specific cash receipts. The debit to Cash Short &Over would be B) $178 C) $173 D) $5 A) $17 9) Which of the following illustrates the internal control procedure-separation of 9) duties? A) Cashiers must not have access to accounting records. B) The invoices and other documents must be pre-numbered. C) Electronic devices must be installed to reduce theft. D) External auditors will monitor internal controls. ) The cash ratios of four companies are listed below. 10 Company Juan Co Rose, Inc Freelance, Inc. Pioneer Corp Cash Ratio 0.25 0.12 0.19 0.27 rp Which company has the maximum ability to repay its current liabilities? A) Pioneer Corp. C) Freelance, Inc. B) Rose, Inc. D) Juan Corp

Answer 1

Q6.
Answer is D. Assignmenet of responsibilities
Q7.
Answer is A. retained by customer as proof of deposit transaction
Q8.
Answer is D. $ 5
Q9.
Answer is A. Cashiers must not have access to accounting records
Q10.
Answer is A. Pioneer Corp.