WorksheetsLecture 10 Group A
Total questions: 10
Worksheet time: 5mins
Which of these does not represent proper internal control of cash receipts?
Daily banking of receipts.
Two people opening the mail.
Paying accounts directly out of the cash register.
Balancing the cash register after each employees’ shift.
Which of these is not a characteristic of good internal control?
Insurance of assets
Joint of responsibility for assets
Rotation of employees over a range of tasks
Regular bank reconciliations
As a business grows and the owner must rely more on others to help in managing operations, internal control becomes:
more important.
less important.
unnecessary.
growth has no effect on the importance of internal control.
Internal controls that apply to computerised accounting systems include which of the following?
1. Programming controls
2. Passwords
3. Back ups
4. Computer viruses
1, 2 and 3
1, 2 and 4
1, 3 and 4
2, 3 and 4
Which of these is not a measure of good internal control?
Banking cash daily
Reconciling a control account with its subsidiary ledger
Combining authority to purchase goods and sign cheques
Requiring all employees to take annual leave
Mechanical and electronic controls should be used, where possible, to protect assets and improve the accuracy of the accounting process. An example of such a device is:
i A burglar alarm
ii A virus scanner
iii Electronic funds transfer
iv Insurance
i, ii and iii
i, ii, iii and iv
i, iii and iv
ii, iii and iv
Which of these is a limitation of internal control?
I The cost of the controls
II The possibility of collusion between two or more employees
III The accounting standards
I and III
II and III
I and II
I, II and III
Which of these is not an important principle for the control of cash payments?
Employees who sign cheques should not accept delivery of goods.
Only senior staff should have the authority to approve invoices for payment.
Cheques should be written out promptly even if the invoice is not yet provided.
Once the cheque is written the invoice should be stamped ‘paid’.
Which of these is not a principle of internal control?
Separation of record keeping and custody of assets
Division of responsibility for related transactions
Establishing clear lines of responsibility
Placing excess cash on fixed deposit to earn interest
When preparing a bank reconciliation what would cause the bank statement balance to be less than the adjusted cash balance in the general ledger? (Assume the bank is not in overdraft.)
Bank service charges
Dishonoured cheques
Outstanding deposits
Outstanding cheques
