chpt7 - Chapter 7 Review Internal Control and Cash...

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Chapter 7 Review Internal Control and Cash
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . All major U.S. corporations are required to maintain an adequate system of ____ ____. Answer: Internal Control
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . The + + ing of assets is an objective of a company’s system of internal control. Answer: safeguarding
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . Requiring employees to take is a in the system of internal controls. Answer: vacation, strength
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . Bonding means insuring a company against by employees. Answer: theft
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . Internal control procedures include the following: (clues: 1,2,3 Check book = Bank Statement) Answer: Prenumbering documents and reconciling the bank statement
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them (+ or -) the potential for errors and fraud. Answer: Increases +
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . When two or more people get together for the purpose of circumventing prescribed controls, it is called c____. Answer: collusion
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . From an internal control standpoint, the asset most susceptible to improper diversion and use is Answer: cash
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . The control principle related to not having the __ person authorize and pay for goods is known as separation of duties. Answer: same
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SO1—Chapter 7 Internal Control and Cash Identify the principles of internal control . Two individuals at a retail store work the same cash register. You evaluate this situation as a violation of ___ of ____. Answer: establishment of responsibility
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Identify the principles of internal control . Physical controls to safeguard assets
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This note was uploaded on 08/12/2011 for the course ACCT 505 taught by Professor Doe during the Spring '11 term at Keller Graduate School of Management.

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chpt7 - Chapter 7 Review Internal Control and Cash...

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