Answered

An example of an internal control is NOT:
A. the use of unnumbered checks.
B. all checks written must have reference source documents.
C. the use of bank checking account.
D. All of these answers are correct.



Answer :

GinnyAnswer

Final answer:

Internal controls are essential for organizations to safeguard assets and promote efficiency. Numbered checks, reference source documents, and bank accounts are examples of effective internal controls.


Explanation:

Internal controls are measures put in place by organizations to safeguard assets, ensure accuracy in financial reporting, and promote operational efficiency.

  • A. An example of an internal control is NOT the use of unnumbered checks because using numbered checks helps in tracking and monitoring payments.
  • B. Requiring all checks to have reference source documents is an important internal control to ensure accountability and prevent fraud.
  • C. Utilizing a bank checking account is also a crucial internal control to manage cash transactions effectively.
  • D. Therefore, the correct answer is A. The use of unnumbered checks is not a good internal control practice.

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