chapter8b - Chapter 8b 1. Internal control consists of all...

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Chapter 8b 1. Internal control consists of all the related methods and measures adopted within an organization to safeguard its assets and to enhance the accuracy and reliability of its accounting records. A. True B. Fals e 2. Control is most effective when two people are responsible for a given task. A. True B. Fals e 3. Few internal control systems provide for independent internal verification. A. True B. Fals e 4. Cash is the asset most susceptible to improper diversion and use. A. True B. Fals e 5. Internal control over cash disbursements is more effective when companies pay by check, rather than by cash. A. True B. Fals e 6. Companies use a petty cash fund to pay relatively small amounts.
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A. True B. Fals e 7. There are two parties to a check: the maker and the payee. A. True B. Fals e 8. A bank issues a debit memorandum when it collects a note receivable for a depositor. A. True B. Fals
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chapter8b - Chapter 8b 1. Internal control consists of all...

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