Proper internal control means that responsibility for a task is clearly established and assigned to one person True Technology such as cash registers check protectors time clocks and personal identification scanners can improve internal control True Good internal control dictates that a person who controls an False asset also maintains that asset s accounting records Separation of duties divides responsibility for a transaction True or a series of related transactions between two or more individuals or departments Separation of duties reduces the risk of error or fraud The payee is the person who signs a check authorizing its payment False A voucher system is a set of procedures and approvals designed to control cash disbursements and the acceptance of obligations True If the Cash Over and Sort account has a debit balance at the False end of the period the amount is reported as miscellaneous revenue The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared True The entry necessary to establish a petty cash fund should include Debit to Petty Cash and Credit to Cash When a petty cash fund is in use Expenses paid with petty cash are recorded when the fund is replenished Accounts receivable occur from credit sales to customers True The formula for computing interest on a note is the principal of the note X the annual interest rate X time expressed in fraction of a year True The aging method of determining bad debts expense is based on the knowledge that the longer a receivable is past true the lower the likelihood of collection True Notes receivables are always classified as current liabilities False The matching principal requires that accrued interest on outstanding notes receivables be recorded at the end of each accounting period True Plant assets refer to intangible assets that are used in the operations of a business False Depreciation measures the actual decline in market value of False an asset Inadequacy refers to the insufficient capacity of a company s plant assets to meet the company s growing productive demands True Depreciation expense is calculated using the estimates of an asset s salvage value and useful life True