Topic 8: Internal Control & Accounting for Cash

Question 1

What are the 2 types of Internal Control?

Answer 1

1. Administrative Controls
2. Accounting Controls

Question 2

What is Administrative Controls?

Answer 2

Administrative Controls consist of methods and procedures established to promote operational efficiency and adherence to managerial policies.

Question 3

What are Accounting Controls?

Answer 3

Accounting Controls consist of methods and procedures used to ensure the reliability of financial records and to safeguard assets.

Question 4

What is the Bank Reconciliation Statement?

Answer 4

It is a formal schedule which accounts for any differences which may have occurred.