1. Which of the following is not a control that generally is established over cash receipts?
A. To prevent abstraction of cash, a control listing of cash receipts should be prepared by mailroom personnel.
B. To insure accurate posting, the accounts receivable clerk should post the customers' receipts from customers' checks.
C. To insure accuracy of the accounts receivable records, the records should be reconciled monthly to the accounts receivable controlling account.
D. To prevent theft of cash, receipts should be deposited daily.
2. Which of the following is not a universal rule for achieving internal control over cash?
A. Separate recordkeeping from accounting for cash to the extent possible.
B. Deposit each day's cash receipts intact.
C. Separate cash handling from recordkeeping.
D. Have monthly bank reconciliations prepared by employees not responsible for the issuance of checks.
3. Which of the following is not a control over cash disbursements?
A. Disbursements should be made by check.
B. A check protecting machine should be used.
C. Documents supporting the payment of a disbursement should be canceled by the person preparing the check to prevent reuse.
D. Voided checks should be defaced and filed with paid checks.
4. Properly designed internal control will permit the same employee to:
A. Receive and deposit checks, and also approve write-offs of customer accounts.
B. Approve vouchers for payment, and also receive and deposit cash.
C. Reconcile the bank statements, and also receive and deposit cash.
D. Sign checks, and also cancel supporting documents.