Question 1

________ rearranges messages by a mathematical formula making the message impossible to read by someone who does not know the code.

Accepted Answer

A) Encryption 
B) Firewall 
C) Security wall 
D) Access device 
A) Encryption 
B) Firewall 
C) Security wall 
D) Access device A

Question 2

Perpetrators of fraud usually commit fraud for their own short-term economic gain.

Accepted Answer

A) True 
 B)False  True

Question 3

When preparing a bank reconciliation,which of the following items should be added to the book balance?

Accepted Answer

A) EFT receipts 
B) deposits in transit 
C) collection of note receivable by bank 
D) both EFT receipts and collection of a note receivable by the bank 
A) EFT receipts 
B) deposits in transit 
C) collection of note receivable by bank 
D) both EFT receipts and collection of a note receivable by the bank D

Question 4

The person performing the bank reconciliation should have no other cash duties.

Accepted Answer

A) True 
 B)False

Question 5

The objectives of internal control do NOT include:

Accepted Answer

A) compliance with standards of social responsibility. 
B) safeguarding assets. 
C) promoting operational efficiency. 
D) compliance with legal requirements. 
A) compliance with standards of social responsibility. 
B) safeguarding assets. 
C) promoting operational efficiency. 
D) compliance with legal requirements.

Question 6

The type of fraud committed by company managers,who make false and misleading entries in the books in order to improve a company's financial statements,is called:

Accepted Answer

A) misappropriation of assets. 
B) fraudulent financial reporting. 
C) embezzlement. 
D) collusion. 
A) misappropriation of assets. 
B) fraudulent financial reporting. 
C) embezzlement. 
D) collusion.

Question 7

One of the elements of the fraud triangle is opportunity.

Accepted Answer

A) True 
 B)False

Question 8

Examples of items purchased with petty cash are:

Accepted Answer

A) delivery cost for package. 
B) taxi fare for executive of company. 
C) box of name tags for convention. 
D) all of the above. 
A) delivery cost for package. 
B) taxi fare for executive of company. 
C) box of name tags for convention. 
D) all of the above.

Question 9

For companies that are too small to hire enough employees to properly separate duties,the key to good internal control is getting the owner to perform which of the following duties:

Accepted Answer

A) approving all small transactions. 
B) reconciling the monthly bank account or making bank deposits. 
C) reconciling the monthly bank account and making bank deposits. 
D) The owner should not perform any of the above duties. 
A) approving all small transactions. 
B) reconciling the monthly bank account or making bank deposits. 
C) reconciling the monthly bank account and making bank deposits. 
D) The owner should not perform any of the above duties.

Question 10

In most reported fraud cases,fraudsters exhibit one or more behavioral red flags.Which of the following is NOT one of these behavioral red flags?

Accepted Answer

A) financial difficulties 
B) unusually close associations with vendors 
C) unusually close associations with customers 
D) living within one's means 
A) financial difficulties 
B) unusually close associations with vendors 
C) unusually close associations with customers 
D) living within one's means

Question 11

The bookkeeper recorded a payment on account as $150 instead of the correct amount of $510.What journal entry is required?

Accepted Answer

A) Debit Accounts Payable for $510 and credit Cash for $510. 
B) Debit Accounts Receivable for $510 and credit Cash for $510. 
C) Debit Accounts Payable for $360 and credit Cash for $360. 
D) Debit Cash for $360 and credit Accounts Payable for $360. 
A) Debit Accounts Payable for $510 and credit Cash for $510. 
B) Debit Accounts Receivable for $510 and credit Cash for $510. 
C) Debit Accounts Payable for $360 and credit Cash for $360. 
D) Debit Cash for $360 and credit Accounts Payable for $360.

Question 12

In a bank reconciliation,items recorded by the bank,but not yet recorded by the company,include:

Accepted Answer

A) deposits in transit. 
B) bank collections of accounts receivable. 
C) outstanding checks. 
D) both deposits in transit and outstanding checks. 
A) deposits in transit. 
B) bank collections of accounts receivable. 
C) outstanding checks. 
D) both deposits in transit and outstanding checks.

Question 13

The "tone at the top" refers to:

Accepted Answer

A) a component of the control environment. 
B) a concept that applies only to large corporations. 
C) owners and top managers behaving honorably to set a good example for employees. 
D) A and C. 
A) a component of the control environment. 
B) a concept that applies only to large corporations. 
C) owners and top managers behaving honorably to set a good example for employees. 
D) A and C.

Question 14

The bank reconciliation can be used to control cash in a bank account.

Accepted Answer

A) True 
 B)False

Question 15

In a bank reconciliation,a bank service charge for printing checks is:

Accepted Answer

A) added to the bank balance. 
B) added to the book balance. 
C) subtracted from the book balance. 
D) subtracted from the bank balance. 
A) added to the bank balance. 
B) added to the book balance. 
C) subtracted from the book balance. 
D) subtracted from the bank balance.

Question 16

On a bank reconciliation,electronic fund transfers are:

Accepted Answer

A) additions or subtractions to the bank balance. 
B) additions or subtractions to the book balance. 
C) not put on the bank reconciliation. 
D) only used for journal entries. 
A) additions or subtractions to the bank balance. 
B) additions or subtractions to the book balance. 
C) not put on the bank reconciliation. 
D) only used for journal entries.

Question 17

A payment packet of documents:

Accepted Answer

A) reports the arrival of items purchased. 
B) is sent by the purchasing department to the vendor selling the item. 
C) identifies the need for merchandise and begins the purchasing process. 
D) includes the invoice,receiving report and purchase order. 
A) reports the arrival of items purchased. 
B) is sent by the purchasing department to the vendor selling the item. 
C) identifies the need for merchandise and begins the purchasing process. 
D) includes the invoice,receiving report and purchase order.

Question 18

The two most common types of fraud impacting the financial statements are:

Accepted Answer

A) fraudulent financial reporting and e-commerce fraud. 
B) misappropriation of assets and embezzlement. 
C) fraudulent financial reporting and misappropriation of assets. 
D) cooking the books and fraudulent financial reporting. 
A) fraudulent financial reporting and e-commerce fraud. 
B) misappropriation of assets and embezzlement. 
C) fraudulent financial reporting and misappropriation of assets. 
D) cooking the books and fraudulent financial reporting.

Question 19

Most public companies include additional information about cash and cash equivalents in the footnotes to their financial statements.

Accepted Answer

A) True 
 B)False

Question 20

Cash and Cash equivalents are assets.

Accepted Answer

A) True 
 B)False

________ rearranges messages by a mathematical formula making the message impossible to read by someone who does not know the code.

Perpetrators of fraud usually commit fraud for their own short-term economic gain.

When preparing a bank reconciliation,which of the following items should be added to the book balance?

The person performing the bank reconciliation should have no other cash duties.

The objectives of internal control do NOT include:

The type of fraud committed by company managers,who make false and misleading entries in the books in order to improve a company's financial statements,is called:

One of the elements of the fraud triangle is opportunity.

Examples of items purchased with petty cash are:

For companies that are too small to hire enough employees to properly separate duties,the key to good internal control is getting the owner to perform which of the following duties:

In most reported fraud cases,fraudsters exhibit one or more behavioral red flags.Which of the following is NOT one of these behavioral red flags?

The bookkeeper recorded a payment on account as $150 instead of the correct amount of $510.What journal entry is required?

In a bank reconciliation,items recorded by the bank,but not yet recorded by the company,include:

The "tone at the top" refers to:

The bank reconciliation can be used to control cash in a bank account.

In a bank reconciliation,a bank service charge for printing checks is:

On a bank reconciliation,electronic fund transfers are:

A payment packet of documents:

The two most common types of fraud impacting the financial statements are:

Most public companies include additional information about cash and cash equivalents in the footnotes to their financial statements.

Cash and Cash equivalents are assets.

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 4: Internal Control Cash

________ rearranges messages by a mathematical formula making the message impossible to read by someone who does not know the code.

Perpetrators of fraud usually commit fraud for their own short-term economic gain.

When preparing a bank reconciliation,which of the following items should be added to the book balance?

The person performing the bank reconciliation should have no other cash duties.

The objectives of internal control do NOT include:

The type of fraud committed by company managers,who make false and misleading entries in the books in order to improve a company's financial statements,is called:

One of the elements of the fraud triangle is opportunity.

Examples of items purchased with petty cash are:

For companies that are too small to hire enough employees to properly separate duties,the key to good internal control is getting the owner to perform which of the following duties:

In most reported fraud cases,fraudsters exhibit one or more behavioral red flags.Which of the following is NOT one of these behavioral red flags?

The bookkeeper recorded a payment on account as $150 instead of the correct amount of $510.What journal entry is required?

In a bank reconciliation,items recorded by the bank,but not yet recorded by the company,include:

The "tone at the top" refers to:

The bank reconciliation can be used to control cash in a bank account.

In a bank reconciliation,a bank service charge for printing checks is:

On a bank reconciliation,electronic fund transfers are:

A payment packet of documents:

The two most common types of fraud impacting the financial statements are:

Most public companies include additional information about cash and cash equivalents in the footnotes to their financial statements.

Cash and Cash equivalents are assets.

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters