Question 1

Match the following terms with their correct definitions.
-Providing physical protection of the company's assets

Accepted Answer

Safeguarding refers to providing physical protection of the company's assets.

Answer: G 
 Segregation of duties refers to separating conflicting duties among different individuals to reduce the risk of errors or fraud.

Note: The other terms are also related to internal controls, but their definitions do not directly relate to providing physical protection of assets.

Question 2

Match the following terms with their correct definitions.
-Consists of the methods and records used to identify, measure, record, and communicate financial information about a business

Accepted Answer

Accounting system consists of the methods and records used to identify, measure, record, and communicate financial information about a business.

Answer: E
 Internal control system refers to the policies, procedures, and practices implemented within an organization to ensure that its goals are met effectively and efficiently and that its assets are protected from unauthorized use, theft or loss.

Answer: F
 Safeguarding refers to the measures put in place to prevent or minimize the risk of theft, fraud, or other unauthorized activities that could harm an organization.

Answer: G
 Segregation of duties refers to the separation of tasks and responsibilities within an organization in such a way that no single individual has control over all aspects of a transaction or process.

Answer: D
 Control environment refers to the overall attitude, awareness, and actions of management and employees regarding the importance of control and the quality of compliance with policies and procedures.

Answer: C
 Control activities refer to the specific policies, procedures, and practices that are implemented to ensure that management directives are carried out and that risks are mitigated.

Answer: B
 Business process risks refer to the risks associated with the various processes within an organization, including the risk of errors, fraud, theft, or other losses that could impact the organization's financial performance and reputation.

Answer: H
 Strategic risks refer to the risks associated with the long-term goals and plans of an organization, including the potential impact of changes in the business environment, competition, regulatory requirements, and other external factors.

Question 3

Match the following terms with their correct definition.
-Amounts on deposit with financial institutions and investments primarily held in money market accounts, with original maturities of less than 90 days

Accepted Answer

Cash equivalents are defined as amounts on deposit with financial institutions and investments primarily held in money market accounts, with original maturities of less than 90 days.

Question 4

Match the following terms with their correct definition.
-A fund used to pay for small amounts to avoid the time and expense of paying by check

Accepted Answer

Petty cash is a fund used to pay for small amounts to avoid the time and expense of paying by check. The other options are not related to petty cash.

Question 5

Match the following terms with their correct definitions.
-Collective term for procedures put into place to ensure that employees operate within the scope of their assigned responsibilities and act for the good of the business

Accepted Answer

An Internal control system encompasses the collective procedures and mechanisms put in place by an organization to safeguard assets, ensure accurate and reliable financial reporting, promote operational efficiency, and encourage adherence to prescribed managerial policies, including ensuring that employees operate within the scope of their responsibilities and act for the good of the business.

Question 6

Match the following terms with their correct definition.
-An account used to record any discrepancies between the cash records and the actual amount of cash received

Accepted Answer

Cash over and short is an account used to record any discrepancies between the cash records and the actual amount of cash received.

Question 7

Match the following terms with their correct definition.
-The elapsed time between the purchase of goods for resale and the collection of cash from customers

Accepted Answer

The operating cycle is the elapsed time between the purchase of goods for resale and the collection of cash from customers. A represents short-term, highly liquid investments that are easily convertible into cash. B represents the difference between actual cash received and the amount expected to be received. D represents a small amount of cash kept on hand for minor expenses.

Quiz 4: Internal Control And Cash

Match the following terms with their correct definitions. -Providing physical protection of the company's assets

Match the following terms with their correct definitions. -Consists of the methods and records used to identify, measure, record, and communicate financial information about a business

Match the following terms with their correct definition. -Amounts on deposit with financial institutions and investments primarily held in money market accounts, with original maturities of less than 90 days

Match the following terms with their correct definition. -A fund used to pay for small amounts to avoid the time and expense of paying by check

Match the following terms with their correct definitions. -Collective term for procedures put into place to ensure that employees operate within the scope of their assigned responsibilities and act for the good of the business

Match the following terms with their correct definition. -An account used to record any discrepancies between the cash records and the actual amount of cash received

Match the following terms with their correct definition. -The elapsed time between the purchase of goods for resale and the collection of cash from customers