1. From an Internal Control (/C) standpoint, the Asset most susceptible to thef,
ID: 2576575 • Letter: 1
Question
1. From an Internal Control (/C) standpoint, the Asset most susceptible to thef, embezzlement, or improper use is A) Prepaid insurance. B) Cash. C) Buildings. D) Land. 2 Having diferent individuals receive cash, record cash receipts, and hold the cash is an example of A) Establishment of responsibility. B) Segregation of functional duties. C) Documentation procedures. D) Independent internal verification. 3. The Internal Control (/C) principle related to not having the same person authorize and pay for goods is known as A) establishment of responsibility. B) independent internal verification. C) segregation of functional duties. D) rotation of duties. A Petty Cash fund of S100 is replenished when the fund contains $3 in cash and receipts for $93. The Journal Entry (J/E) to replenish the fund would A) Credit (CR) Cash Over and Short for S4. B) Credit (CR) Miscellaneous Revenue for $4 C) Debit (DR) Cash Over and Short for $4. D) Debit (DR) Miscellaneous Expense for $4. 4. 5. A S100 Petty Cash fund has cash of S17 and receipts of S80. The Journal Entry (J/E) to replenish the account would include a A) Debit (DR) to Cash for $80. B) Credit (CR) to Petty Cash for $83. C) Debit (DR) to Cash Over and Short for $3. D) Credit (DR) to Cash for $80. Page 1Explanation / Answer
1. Answer: Option: B) Cash
Cash is most susceptible to theft, embezzlement, or improper use due to its portability.
2. Answer: Option B) Segregation of functional duties
Segregation of duties is when conflicting tasks are assigned to different individuals with a view to control frauds.
3. Answer: Option C) segregation of functional duties
Segregation of duties is when conflicting tasks are assigned to different individuals with a view to control frauds.
4. Answer: Option C) Debit (DR) Cash Over and Short for $4
The journal entry will be to debit various expense accounts according to the receipts available for $93, debit to cash over and short for $4 and credit to cash for $97
5. Answer: Option C) Debit (DR) to Cash Over and Short for $3
The journal entry will be to debit various expense accounts according to the receipts available for $80, debit to cash over and short for $3 and credit to cash for $83
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