1. A well-designed system of internal controls will eliminate employee theft and fraud in a company.
True False
2. Internal controls that assess degree of compliance with company policies are classified as accounting controls.
True False
3. Separation of duties in an organization should be required to reduce the likelihood of theft.
True False
4. Requiring separation of duties in a business allows the work of one employee to serve as a check on the work of other employees.
True False
5. Even a good system of internal controls can be overridden by collusion among employees.
True False
6. Before a business check is signed, the check signer should examine appropriate supporting documents.
True False
7. The net realizable value of accounts receivable is the amount of receivables a company expects to collect.
True False
8. The best estimate for the amount of cash a company expects to collect from its accounts receivable is the face value of the receivables.
True False
9. Most companies report receivables on their balance sheets at the net realizable value.
True False
10. The face value of Accounts Receivable less the balance in the Allowance for Doubtful Accounts is equal to the net realizable value of the receivables.
True False