WorksheetsAccounting - Internal Controls for Cash
Total questions: 10
Worksheet time: 5mins
What is an internal control?
The internal control of a business involves the practices a business uses in the day to day operation such as inventory management, asset management, human resource management and cash management.
The internal control of a business involves the internal measures and methods that ensure efficient management of the business and achievement of planned objectives.
The internal control of a business involves the external measures and methods that ensure efficient management of the business and achievement of planned objectives.
The internal control of a business involves the internal measures and methods to ensure good business practices.
Which of the following is not an internal control over cash?
Separation of duties.
All cash received should be banked at the end of each business day.
Cash should be kept in a top draw in the manager’s office.
Rotation of duties.
Business records should be checked against a bank reconciliation.
Effective management of cash includes:
Ensuring appropriate controls are implemented.
Preparing cash budgets.
Investing excess cash to maximise revenue.
None of the above.
All of the above.
What are the three (3) main sources of cash in a business?
i. Cash sales, ii. Credit Sales, and iii. cash received from accounts receivable
i. Cash sales, ii. Cash Sales – bank credit/debit cards, and iii. cash received from accounts receivable
i. Lay-Buys, ii. Cash Sales – bank credit/debit cards, and iii. cash received from accounts receivable
i. Cash sales, ii. Cash Sales – bank credit/debit cards, and iii. cash received from petty cash
Cash is the most common form of payment in Australia.
True
False
Which one of the following source documents is not used in conjunction with the receipt of money?
receipts
credit card voucher
bank statement
invoice
cash register summary
Internal controls over a Cash Payments system would have which of the following
Evidence
Proper authorisation
Regular bank reconciliation
Cheques or company credit card
All of the above
The normal method used for controlling and recording petty cash is called a what?
Cash received statement
Cash journal
Cash system
Imprest system
How often would you balance the Petty Cash Book?
Everyday
Once a week
At the end of the month
At the end of the financial year
Only for the receipt of physical cash, a record must be kept to substantiate the receipt of the money in a business.
True
False
