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6 From a cash receipts standpoint, mandating that a single designated employee is authorized to handle cash receipts (at the counter or via the mail) is an example of the control activity: A) Human resource controls B) Independent internal verification C) Establishment of responsibility D) Segregation of Duties 7. From a cash disbursement standpoint, mandating the use of pre-numbered checks and accounting for them in sequence is an example of the control activity: A) Physical controls B) Independent verification C) Documentation Procedures D) Human resource controls 8. A company can improve its chances of having adequate cash flow by following all of the following techniques EXCEPT: A) Increase the speed of receivables collection B) Monitor payment of liabilities C) Keep inventories low D) Invest idle cash E) All of the above are basic principles of cash management 9. Prepare a bank reconciliation: Rainbow Industries gathered the following information prior to reconciling their cash balance per books (internal accounting records) to the recently received bank statement for the month ending August 30, 2018: Cash per balance per books, 8/30 $ 7,075 Deposits in transit $1,000 NSF check $ 420 Bank services charges $ 30 Outstanding checks $5,500 Notes Receivable collected by the $ 600 bank Cash balance per bank, 8/30 $ 11,725 Perform the bank reconciliation. The ADJUSTED CASH BALANCE PER BANK as of August 30, 2018 would be: A) $12,175 B) $2,875 C) $10,175 D) $7,225

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