Accounting Principles - Unit 1 Internal Accounting Controls

What are internal controls? Choose all that apply

• Limiting the number of people handling cash.

• Steps a business takes to protect cash and assets.

• Controlling the Internal revenue service.

• Using checks to make all cash payments & depositing cash receipts in the bank daily.

____is a bank form listing the cash and checks to be deposited

• Deposit Slip

• Endorsement

• Withdrawal Slip

• Restrictive Endorsement

____is an authorized signature written or stamped on the back of a check representing a promise to pay

• A Check

• A Deposit slip

• An Endorsement

• A Withdrawal slip.

This limits, or restricts, how a check may be handled and protect checks from being cashed by anyone else.

• Signture

• Restrictive Endorsement

• Deposit Slip

• Endorsement

The person or business to whom a check is written is called the ____.

• Payor

• Drawee

• Drawer

• Payee

Writing the word "Void" in large letters across the front of a check (in ink) is known as ______.

• Completing the check stub

• Writing a check

• Voiding a check

• Endorsing a check

The measures and procedures provided outside the business to protect cash and other assets.

• External Controls

• Internal Controls

• Opening a checking account

• Filling out a withdrawal slip

A written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the check

• Endorsement

• Check

• Deposit Slip

• Withdrawal Slip

A person or business that has cash on deposit in a bank is known as as _____.

• Account holder

• Debit

• Depositor

• Creditor

___is an itemized record of all the transactions in a depositor's account over a given period, usually a month

• Cash in bank

• Reconciliation

• Cancelled Check

• Bank Statement