No special internal control procedures are necessary with a petty cash account because the amount is usually so small
a. True
b. False
Indicate whether the statement is true or false
False
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Answer the following statements true (T) or false (F)
1. Standards are best measured when they can be made quantifiable. 2. Performance measures can be obtained through personal observation. 3. A maximum 2% deviation from the standard is the acceptable level prescribed for control systems. 4. Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
Ed was an independent owner of a chain of TV stores. He successfully got customers into his store by cutting his prices on widely advertised name-brand products in order to sell other products for which he received a bigger profit. When the manufacturers of three of the name-brand products discovered Ed's actions, they agreed secretly to stop selling him their TVs. The three manufacturers
A. are doing nothing illegal, as they did not get Ed to agree to anything. B. are free to agree not to deal with Ed since the public can go elsewhere and will not be hurt economically. C. can choose either as a group to deal or not to deal with any retailer they want. D. are engaged in a rule of reason violation of the antitrust laws if their action harms competition.
A major disadvantage of implementing SAP is that it weakens the internal controls that exist within an organization
Indicate whether the statement is true or false
Another common name for a private distributor brand is a ____ brand.
A. home B. manufacturer C. generic D. store E. label