Internal controls are not designed to safeguard assets ron1 natural disasters. e

Question

Internal controls are not designed to safeguard assets ron1 natural disasters. employee theft. robbery. unauthorized use. A petty cash fund should be replenished every day. at the end of every accounting period. once a year. as soon as an expense is paid from the fund. Two individuals at a retail store work the same cash register. You evaluate this situation as a violation of establishment of responsibility. a violation of segregation of duties. supporting the establishment of responsibility. supporting internal independent verification. Postage stamps on hand are considered to be cash. petty cash. cash equivalents. a prepaid expense. A debit balance in Cash Over and Short is reported as a contra asset. miscellaneous asset. miscellaneous expense. miscellaneous revenue.

Explanation / Answer

(B) At the end of every acccounting period. (Note: Actually Replenishment of the petty cash fund should be done on a timely basis d epends upon need & tiem nrequired for replenishment)

Sr. No. Question Answer 1 Internal controls are NOT design ............. (A) Natural disasters 2 A petty cash fund should be replenished

(B) At the end of every acccounting period. (Note: Actually Replenishment of the petty cash fund should be done on a timely basis d epends upon need & tiem nrequired for replenishment)

3 Two individual at a retail store....... (A) a violation of establishment of responsibilty 4 Postage stamp on hand are to be considered as (D) A prepaind expense 5 A debit balance in Cash Over & Short is reported as a    (C) Miscellaneous expense

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