True / False Questions
95. A well-designed system of internal controls will eliminate employee theft and fraud in a company.
96. Internal controls that assess degree of compliance with company policies are classified as accounting controls.
97. Separation of duties in an organization should be required to reduce the likelihood of theft.
98. Requiring separation of duties in a business allows the work of one employee to serve as a check on the work of other employees.
99. A good system of internal controls cannot be overridden by collusion among employees.
100. A savings account or certificate of deposit that imposes a substantial penalty for early withdrawals should be classified as Cash on the balance sheet.
101. For a business, Cash generally includes currency, customers' checks, and some savings accounts.
102. Before a business check is signed, the check signer should examine appropriate supporting documents.
103. A bank statement debit memo describes a transaction that increases a customer's account balance.
104. The usual form for a bank reconciliation begins with the ending cash balance shown on the bank statement and reconciles it to the ending cash balance on the company's books.