Marketable securities typically appear in the long

27. Marketable securities typically appear in the long-term investments section of a statement of
financial position.
(A) True
(B) False
Answer : (B)
28. Money market accounts with original maturities of less than 90 days are cash equivalents.

29. Collections of accounts receivable are considered to be cash equivalents.
30. There are no significant differences between IFRS and ASPE with respect to cash and cash
equivalents.
31. The establishment of a petty cash fund has no effect on the company's total cash balance.
(A) True
(B) False
Answer : (A)
32. Even though the amount of a petty cash fund is small, special internal control procedures are
necessary relating to the petty cash fund.
33. As part of a sound system of internal controls, all disbursements (with the exception of petty
cash) should be made by cheque. SHORTANSWER
34. Under the ____________________ Act, management of publicly traded corporations in the United
States have increased responsibility for a system of internal controls that ensures reliability of
financial statements.

35. In a good internal control system, the control ____________________ is such that a solid "tone at the
top" is set by management of the organization.
36. Strategic risk assessment is designed to identify, analyze, and manage possible threats to the
organization's success concerning ____________________ forces such as competitors, customers,
suppliers, and PEST factors.
37. Business process risk assessment is designed to identify, analyze, and manage possible threats
to the organization's success concerning ____________________ forces such as resource
allocations.
38. An internal control activity that separates responsibilities so that no one person handles all the
tasks for a particular activity is referred to as ____________________.