Which of the following is true? Answer A. Administrative controls would limit ac

Question

Which of the following is true?
Answer

A.
Administrative controls would limit access to physical assets but not to accounting records.
B.
Experienced accounting clerks need not use prenumbered documents.
C.
The practice of separating duties prevents an employee from both approving a refund and disbursing the cash.
D.
Internal controls are unnecessary when key employees are bonded.








What effect does reimbursing an employee from the petty cash fund have on the accounting equation?
Answer

A.
"No effect on assets, liabilities, or equities."
B.
Increase liabilities / decrease equities.
C.
Decrease assets / increase liabilities.
D.
Decrease assets / decrease equities.

Explanation / Answer

B. Experienced accounting clerks need not use prenumbered documents. C. The practice of separating duties prevents an employee from both approving a refund and disbursing the cash. C. Decrease assets / increase liabilities.

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