Question

question 15 (5 points)
an example of an internal control is
the use of a bank account.
the use of pre-numbered checks.
the use of checks with reference source documents.
all of the above

question 16 (5 points)
a restrictive endorsement on a check
can be further endorsed by someone else.
is the safest endorsement for businesses.
permits the bank to use its best judgment.
none of the above

Explanation:

Analyze internal control examples

Using the Internal Controls knowledge point

• A bank account acts as an external control over cash.
• Pre-numbered checks prevent unauthorized check issuance and ensure completeness.
• Matching checks with reference source documents (like invoices) ensures validity.
• Therefore, all three options represent valid internal control procedures.

Analyze restrictive endorsements

Using the Check Endorsements knowledge point

• A restrictive endorsement (e.g., "For Deposit Only") restricts further transfer.
• It prevents unauthorized cashing if the check is lost or stolen.
• This makes it the safest endorsement method for business operations.

Answer:

Question 15

• the use of a bank account.
• the use of pre-numbered checks.
• the use of checks with reference source documents.
• All of the above (Correct answer)

Question 16

• can be further endorsed by someone else.
• is the safest endorsement for businesses. (Correct answer)
• permits the bank to use its best judgment.
• None of the above