Acc 557 Wk 6 Chapter 7,8 Quiz - All Possible Questions

ACC 557 WK 6 Chapter 7,8 Quiz - All Possible Questions

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ACC 557 WK 6 Chapter 7,8 Quiz - All Possible Questions

TRUE-FALSE STATEMENTS

    1.     Internal control is mainly concerned with the amount of authority a supervisor exercises over a subordinate.

    2.     A highly automated computerized system of accounting eliminates the need for internal control.

    3.     The safeguarding of assets is an objective of a company's system of internal control.

    4.     Management is responsible for establishing a system of internal control.

    5.     Internal control is most effective when several people are responsible for a given task.

    6.     The responsibility for keeping the records for an asset should be separate from the physical custody of that asset.

    7.     Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

    8.     The extent of internal control features adopted by a company must be evaluated in terms of cost-benefit.

    9.     An effective system of internal control requires that at least two individuals be assigned to one cash drawer so that each can serve as check on the other.

  10.     Only large companies need to be concerned with a system of internal control.

  11.     The responsibility for ordering, receiving, and paying for merchandise should be assigned to different individuals.

  12.     In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry.

  13.     Firms use physical controls primarily to safeguard their assets.

  14.     A segregation of duties among employees eliminates the possibility of collusion.

  15.     For efficiency of operations and better control over cash, a...