Question 1

To improve internal control,paychecks should be distributed by the employee's supervisor.

Accepted Answer

A) True 
 B)False

Question 2

What is recorded by the asset maintenance part of the fixed asset system?

Accepted Answer

periodic depreciation followin

Question 3

Payroll uses time card data to do all of the following except

Accepted Answer

A) prepare the payroll register 
B) update employee payroll records 
C) prepare the labor distribution summary 
D) prepare paychecks 
A) prepare the payroll register 
B) update employee payroll records 
C) prepare the labor distribution summary 
D) prepare paychecks

Question 4

List four types of data that appear on a depreciation schedule.

Accepted Answer

item description,depreciation

Question 5

A control technique that can reduce the risk of a terminated employee being paid is

Accepted Answer

A) a security camera viewing the time clock 
B) the supervisor taking attendance during the shift 
C) paychecks being distributed by an independent paymaster 
D) reconciliation of time cards and job tickets 
A) a security camera viewing the time clock 
B) the supervisor taking attendance during the shift 
C) paychecks being distributed by an independent paymaster 
D) reconciliation of time cards and job tickets

Question 6

The Golf Club Company makes custom golf clubs.The manufacturing supervisor interviews people who have specialized manufacturing skills,and then informs payroll when an employee is hired.The employees use a time clock to record the hours they work.The employees are also required to keep a record of the time they spend working on each order.The supervisor approves all time cards.
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The accountant analyzes the job tickets and prepares a labor distribution summary.Payroll prepares the payroll register and paychecks.The supervisor distributes the paychecks to the employees.Payroll informs cash disbursement of the funds required to cover the entire payroll amount.The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll.
Describe at least three internal control weaknesses; for each weakness suggest an improvement to internal control.

Accepted Answer

Weakness: The supervisor could be creati

Question 7

Which internal control is not an important part of the payroll system?

Accepted Answer

A) Supervisors verify the accuracy of employee time cards. 
B) Paychecks are distributed by an independent paymaster. 
C) Accounts payable verifies the accuracy of the payroll register before transferring payroll funds to the general checking accounting. 
D) General ledger reconciles the labor distribution summary and the payroll disbursement voucher. 
A) Supervisors verify the accuracy of employee time cards. 
B) Paychecks are distributed by an independent paymaster. 
C) Accounts payable verifies the accuracy of the payroll register before transferring payroll funds to the general checking accounting. 
D) General ledger reconciles the labor distribution summary and the payroll disbursement voucher.

Question 8

Asset maintenance involves

Accepted Answer

A) the recording of periodic depreciation 
B) adjusting the asset records to reflect the cost of physical improvements 
C) keeping track of the physical location of the assets 
D) all of the above 
A) the recording of periodic depreciation 
B) adjusting the asset records to reflect the cost of physical improvements 
C) keeping track of the physical location of the assets 
D) all of the above

Question 9

Payroll processing can be automated easily because accounting for payroll is very simple.

Accepted Answer

A) True 
 B)False

Question 10

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

Accepted Answer

The two documents are the time card and

Question 11

Which documents prompt the fixed asset department to create a fixed asset record?

Accepted Answer

the receiving report

Question 12

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a reasonable control for fixed assets?

Accepted Answer

A) Proper authorization is required for acquisition and disposal of fixed assets. 
B) Fixed asset records show the location of each asset. 
C) Fully depreciated assets are immediately disposed of. 
D) Depreciation policies are in writing. 
A) Proper authorization is required for acquisition and disposal of fixed assets. 
B) Fixed asset records show the location of each asset. 
C) Fully depreciated assets are immediately disposed of. 
D) Depreciation policies are in writing.

Question 14

Depreciation

Accepted Answer

A) assures that assets are reported at fair market value 
B) is discretionary for many firms 
C) allocates the cost of an asset over its useful life 
D) is the responsibility of the department using the asset 
A) assures that assets are reported at fair market value 
B) is discretionary for many firms 
C) allocates the cost of an asset over its useful life 
D) is the responsibility of the department using the asset

To improve internal control,paychecks should be distributed by the employee's supervisor.

What is recorded by the asset maintenance part of the fixed asset system?

Payroll uses time card data to do all of the following except

List four types of data that appear on a depreciation schedule.

A control technique that can reduce the risk of a terminated employee being paid is

Which internal control is not an important part of the payroll system?

Asset maintenance involves

Payroll processing can be automated easily because accounting for payroll is very simple.

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

Which documents prompt the fixed asset department to create a fixed asset record?

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Which of the following is not a reasonable control for fixed assets?

Depreciation

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

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Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

To improve internal control,paychecks should be distributed by the employee's supervisor.

What is recorded by the asset maintenance part of the fixed asset system?

Payroll uses time card data to do all of the following except

List four types of data that appear on a depreciation schedule.

A control technique that can reduce the risk of a terminated employee being paid is

Which internal control is not an important part of the payroll system?

Asset maintenance involves

Payroll processing can be automated easily because accounting for payroll is very simple.

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

Which documents prompt the fixed asset department to create a fixed asset record?

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Which of the following is not a reasonable control for fixed assets?

Depreciation

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters