Chapter 7

• what is internal control?


  Internal controls are policies and procedures implemented to protect assets.
• Internal control takes many forms - some are broadly based like??


  employee drug testing, video surveillance, scrutiny of company emails
• What is a key purpose of internal controls in the accounting system??

  To ensure transactions are processed efficiently and correctly
• What is chart of accounts?


  →To ensure transactions are processed efficiently and correctly
• What is chart of accounts main purpose??


  →To ensure transactions are recorded in proper accounts
• How does chart of accounts help with expense analysis??

  Allows expenses to be compared against prior year records
• effective cash control generally requires the following what?

  • separation of duties, same day deposits, payments made using non-cash means:
• What are the 2 forms of internal control over cash?


  petty cash account and bank reconciliation
• what type of an account is a petty cash account?


  current asset account