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CHAPTER 5
INTERNAL CONTROL
TRUE OR FALSE QUESTIONS
(Correct answer indicated by T for True and F for False answers)
writing.
one establishment to another.
memorandum if goods are short-shipped or returned for some reason.
are kept busy.
receivable also handles cash received in payment of those accounts.
reading, no further control is necessary.
for good internal control.
storeroom is a perpetual inventory card.
delivery.
make the related entries in the accounting records.
services.
bank balance.
immediately agree, the company should put through an adjustment on its books for
the difference.
sales mix.
MULTIPLE CHOICE QUESTIONS
(Correct answer indicated by asterisk)
1. An objective of internal control is to:
2. Collusion is when:
3. Internal control should generally be instituted only if:
4. Responsibilities for specific tasks should be defined so:
5. Written procedures for each set of tasks are required:
6. Record keeping and the control of assets should be separated:
7. A purchase requisition is:
8. A perpetual inventory card is used for each item in the storeroom to:
9. Lapping is a method of fraud that can occur when:
10. Machines should be used wherever possible in internal control to:
11. Each day’s cash receipts should be deposited intact in the bank daily:
12. A bank reconciliation is:
13. In a bank reconciliation outstanding checks are:
14. The main purpose of calculating a standard food cost percentage is to:
15. In using standard cost control, a change in the sales revenue mix may cause:
