Which of These Is Not a Good Internal Control Practice

question 1

Multiple Choice

Which of these is not a good internal control practice?

• A) Handwriting cheques
• B) The use of passwords for computer access
• C) The pre-numbering of documents
• D) Random checks of the petty cash balance

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Definitions:

Schedule E

A form used by the IRS for reporting income and loss from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.

Rental Income

Income received from allowing others the use of a property in exchange for payment, typically reported on tax returns and subject to specific rules and taxes.

Repair Expense

Costs incurred to fix or maintain property or equipment, generally deductible in the year they are incurred for tax purposes.