Indicate Whether Each of the Following Statements Regarding Internal Controls

question 12

Short Answer

Indicate whether each of the following statements regarding internal controls is true or false.
_____ a) Cash receipts should be deposited in a bank when they reach a predetermined level of materiality.
_____ b) To improve operating efficiency, a company should make most of its disbursements in currency instead of checks.
_____ c) Supporting documents are required when checks are presented to the check signer.
_____ d) Supporting documents should not be marked "paid" until the check clears the bank.
_____ e) All spoiled and voided checks should be defaced and retained.

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Definitions:

Printed Materials

Physical documents or publications, such as books, magazines, flyers, or brochures, produced through printing.

Finger-Stick Glucose Testing

A method to monitor blood sugar levels by pricking the finger to obtain a small blood sample for analysis, common in diabetes management.

Demonstration

A method of teaching or showing how a process or activity is performed, typically involving a visual presentation or practical example.

Manufacturer's Pamphlet

A document provided by a manufacturer that contains information about a product, including usage, maintenance, and safety guidelines.