Exam 12: Administrative Processes and Controls

One of the reasons that management, not employees, initiates more unethical and fraudulent activities is that employees do not have access to much of the documentation needed to affect the event.

On processes such as sales and cash receipts employees are given general authorization to initiate and process transactions.

The proper sequence of events for the accounting cycle is:

Sales and sales returns can affect which journals?

A common interest for manufacturing, retail, and service firms is:

External users need detailed balance information on every existing account in the general ledger.

Select the correct statement from the following:

Not-for-profit organizations would be interested in:

In a manual system with proper segregation of duties, an employee in the general ledger department should only

Internal reports do not include:

Which of the following is NOT generally an area of measure in a balanced scorecard?

The four primary functions of corporate governance do not include:

Special journals are journals that are established to record the transactions of specific customers and vendors.

When special journals are utilized:

The only method of exercising corporate governance over administrative processes and financial reporting is through the company's budgeting process.

Which of the following, within the corporation, has the responsibility for making investment decisions?

The four general purpose financial statements are:

A well-defined chart of accounts would contain an account titled "Rent."

Which of the following is NOT a special journal?

Within the conversion processes, systems and controls result from transactions that are: