ACING MBA 510 EXAM 2 WITH THE LATEST A+ QUESTIONS AND
ANSWERS STUDY COMPANION.
True or False: Cash equivalents consist of short-term and long-term investments
FALSE
Two clerks sharing the same cash register is a violation of which internal control
principle?
Establish responsibilities
Three parties involves with a check are
1) maker
2) payee
3) bank (payer)
On a bank reconciliation, a bank fee for check printing not yet recorded by the
company is :
deducted from the book of cash balance
Outstanding checks refer to checks that have been
written by depositer, subtracted on depositors books, and sent to payee, but not turned
in for payment at the bank statement date
Cash, not including cash equivalents, includes:
customer checks, cashier checks, and money orders
True or False: The primary objective of internal control procedures is to
safeguard the business against theft from government agencies
FALSE
True or False: separating the responsibility for a transaction between two or more
individuals or depts will not help prevent someone from creating a fictitious
invoice and paying the money to himself
FALSE
True or False: Separation of recordkeeping for assets from the custody over
assets does not prevent collusion between two or more employees to commit
fraud
TRUE
, True or False: establishing responsibilities helps determine who is at fault for
errors or fraud
TRUE
The _______ category includes items that are acceptable for deposit in bank
accounts such as customer checks, cashier's checks, and money orders
CASH
The __________ category includes short-term, highly liquid investment assets
that are readily convertible to a known cash amount and sufficiently close to their
due dates so that their market value will not greatly change
cash equivalents
Summarizes projected cash payments and cash receipts
cash budget
True or False: Separation of duties eliminates the possibility of collusion to steal
and asset and hide theft from the records
FALSE
True or false: A voucher system of control improves internal control of cash
payments
True
True or false: a guideline for safeguarding cash is to require all payments be
made in cash
False
True or false: it is good internal control for the recordkeeper to be in charge of
writing and signing checks when owner is out of town
FALSE
True or false: Internal control procedures should be designed to protect assets
from waste and theft
TRUE
True or False: One objective of internal control procedures is to safeguard the
assets of the business
TRUE
ANSWERS STUDY COMPANION.
True or False: Cash equivalents consist of short-term and long-term investments
FALSE
Two clerks sharing the same cash register is a violation of which internal control
principle?
Establish responsibilities
Three parties involves with a check are
1) maker
2) payee
3) bank (payer)
On a bank reconciliation, a bank fee for check printing not yet recorded by the
company is :
deducted from the book of cash balance
Outstanding checks refer to checks that have been
written by depositer, subtracted on depositors books, and sent to payee, but not turned
in for payment at the bank statement date
Cash, not including cash equivalents, includes:
customer checks, cashier checks, and money orders
True or False: The primary objective of internal control procedures is to
safeguard the business against theft from government agencies
FALSE
True or False: separating the responsibility for a transaction between two or more
individuals or depts will not help prevent someone from creating a fictitious
invoice and paying the money to himself
FALSE
True or False: Separation of recordkeeping for assets from the custody over
assets does not prevent collusion between two or more employees to commit
fraud
TRUE
, True or False: establishing responsibilities helps determine who is at fault for
errors or fraud
TRUE
The _______ category includes items that are acceptable for deposit in bank
accounts such as customer checks, cashier's checks, and money orders
CASH
The __________ category includes short-term, highly liquid investment assets
that are readily convertible to a known cash amount and sufficiently close to their
due dates so that their market value will not greatly change
cash equivalents
Summarizes projected cash payments and cash receipts
cash budget
True or False: Separation of duties eliminates the possibility of collusion to steal
and asset and hide theft from the records
FALSE
True or false: A voucher system of control improves internal control of cash
payments
True
True or false: a guideline for safeguarding cash is to require all payments be
made in cash
False
True or false: it is good internal control for the recordkeeper to be in charge of
writing and signing checks when owner is out of town
FALSE
True or false: Internal control procedures should be designed to protect assets
from waste and theft
TRUE
True or False: One objective of internal control procedures is to safeguard the
assets of the business
TRUE
