1. | Internal controls are concerned with | A) | only manual systems of accounting. | B) | the extent of government regulations. | C) | safeguarding assets. | D) | preparing income tax returns. |

2. | Control over cash disbursements is generally more effective when | A) | all bills are paid in cash. | B) | disbursements are made by the accounts payable subsidiary clerk. | C) | payments are made by check. | D) | all purchases are made on credit. |

3. | Which of the following would be added to the balance per books on a bank reconciliation? | A) | Outstanding checks. | B) | Deposits in transit. | C) | Notes collected by the bank. | D) | NSF check. |

4. | Karlin Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books, 4/30 | $6,600 | Deposits in transit | 900 | Notes receivable and interest collected by bank | 2,220 | Bank charge for check printing | 75 | Outstanding checks | 4,500 | NSF check | 420 |
The adjusted cash balance per books on April 30 is | A) | $9,225. | B) | $8,820. | C) | $8,325. | D) | $9,165. |

5. | Which of the following is not a basic principle of cash management? | A) | Increase collection of receivables. | B) | Keep inventory levels high. | C) | Delay payment of liabilities. | D) | Invest idle cash. |

6. | The following information was taken from Niland Company cash budget for the month of April Beginning cash balance | $30,000 | Cash receipts | 27,000 | Cash disbursements | 34,000 |
If the company has a policy of maintaining end of the month cash balance of $25,000, the amount the company would have to borrow is | A) | $29,000. | B) | $5,000. | C) | $2,000. | D) | $0. |

7. | All of the following are examples of internal control procedures except | A) | using prenumbered documents. | B) |