Question 1

Which of the following reflects a weak internal control system?

Accepted Answer

A)  All employees are well supervised 
B)  A single employee is responsible for comparing a receiving report to an invoice 
C)  All employees must take their vacations 
D)  A single employee is responsible for the collecting and recording of cash 
A)  All employees are well supervised 
B)  A single employee is responsible for comparing a receiving report to an invoice 
C)  All employees must take their vacations 
D)  A single employee is responsible for the collecting and recording of cash

Question 2

An element of internal control is:

Accepted Answer

A)  business. 
B)  management. 
C)  monitoring. 
D)  personnel policies. 
A)  business. 
B)  management. 
C)  monitoring. 
D)  personnel policies.

Question 3

Risks can be analyzed to:

Accepted Answer

A)  assess their likelihood of occurring. 
B)  assess their overall significance. 
C)  determine actions that will minimize them. 
D)  do all of these. 
A)  assess their likelihood of occurring. 
B)  assess their overall significance. 
C)  determine actions that will minimize them. 
D)  do all of these.

Question 4

The data needed to adjust a depositor's books are shown in the "adjustments to the depositor's records" section of a bank reconciliation.

Accepted Answer

A) True 
 B)False

Question 5

The amount of the "adjusted balance" appearing on a bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Accepted Answer

A) True 
 B)False

Question 6

A bank reconciliation is an important part of the system of internal controls.

Accepted Answer

A) True 
 B)False

Question 7

Why would a bank require a company to maintain a compensating balance?

Accepted Answer

Usually it is part o

Question 8

The bank reconciles its statement to the depositor's records.

Accepted Answer

A) True 
 B)False

Question 9

Minimum cash balance maintained in the bank account is called line of credit.

Accepted Answer

A) True 
 B)False

Question 10

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n):

Accepted Answer

A)  deduction from the cash balance per books. 
B)  addition to the cash balance per bank. 
C)  deduction from the cash balance per bank. 
D)  addition to the cash balance per books. 
A)  deduction from the cash balance per books. 
B)  addition to the cash balance per bank. 
C)  deduction from the cash balance per bank. 
D)  addition to the cash balance per books.

Which of the following reflects a weak internal control system?

An element of internal control is:

Risks can be analyzed to:

The data needed to adjust a depositor's books are shown in the "adjustments to the depositor's records" section of a bank reconciliation.

The amount of the "adjusted balance" appearing on a bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

A bank reconciliation is an important part of the system of internal controls.

Why would a bank require a company to maintain a compensating balance?

The bank reconciles its statement to the depositor's records.

Minimum cash balance maintained in the bank account is called line of credit.

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n):

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 5: Sarbanes-Oxley, Internal Control, and Cash

Which of the following reflects a weak internal control system?

An element of internal control is:

Risks can be analyzed to:

The data needed to adjust a depositor's books are shown in the "adjustments to the depositor's records" section of a bank reconciliation.

The amount of the "adjusted balance" appearing on a bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

A bank reconciliation is an important part of the system of internal controls.

Why would a bank require a company to maintain a compensating balance?

The bank reconciles its statement to the depositor's records.

Minimum cash balance maintained in the bank account is called line of credit.

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n):

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters