Question 1

The use of automatic pre-authorized monthly bill payment

Accepted Answer

A)  has declined significantly in Canada over the past several years. 
B)  reduces the effectiveness of an organization's internal control system. 
C)  is a form of electronic funds transfer. 
D)  substantially increases the amount of paperwork required by the accounting department. 
A)  has declined significantly in Canada over the past several years. 
B)  reduces the effectiveness of an organization's internal control system. 
C)  is a form of electronic funds transfer. 
D)  substantially increases the amount of paperwork required by the accounting department.

Question 2

When two or more people get together for the purpose of circumventing prescribed controls, it is called

Accepted Answer

A)  a fraud committee. 
B)  collusion. 
C)  a division of duties. 
D)  bonding of employees. 
A)  a fraud committee. 
B)  collusion. 
C)  a division of duties. 
D)  bonding of employees.

Question 3

A bank overdraft occurs

Accepted Answer

A)  after a bank reconciliation. 
B)  when a cheque is written for more than the amount in the bank account. 
C)  when a previously deposited customer cheque bounces. 
D)  when an error is discovered. 
A)  after a bank reconciliation. 
B)  when a cheque is written for more than the amount in the bank account. 
C)  when a previously deposited customer cheque bounces. 
D)  when an error is discovered.

Question 4

From an internal control standpoint, the asset most susceptible to improper diversion and use is

Accepted Answer

A)  inventory. 
B)  cash. 
C)  short-term investments. 
D)  accounts receivable. 
A)  inventory. 
B)  cash. 
C)  short-term investments. 
D)  accounts receivable.

Question 5

If a company deposits all its receipts in the bank and pays all its bills by cheque, then the monthly bank statement balance will always agree with the company's record of its chequing account balance.

Accepted Answer

A) True 
 B)False

Question 6

Having one person receive all cash and a different person post to the Accounts Receivable account in the general ledger is an example of

Accepted Answer

A)  inadequate internal control. 
B)  duplication of effort. 
C)  independent check of performance. 
D)  segregation of duties. 
A)  inadequate internal control. 
B)  duplication of effort. 
C)  independent check of performance. 
D)  segregation of duties.

Question 7

Employees sometimes commit fraud because of too much debt. This is considered an opportunity to commit fraud.

Accepted Answer

A) True 
 B)False

Question 8

Jian Hua Dong filled up her vehicle using her debit card. The cost of the fill up was $50. Each time a customer uses a debit card Petro Canada is charged a transaction fee of $0.50. The entry to record the transaction by Petro Canada is

Accepted Answer

The answer of Jian Hua Dong filled up her vehicle...

Question 9

When one person is responsible for all related activities, the potential for errors and irregularities increases.

Accepted Answer

A) True 
 B)False

Question 10

A debit card gives customers access to money made available by a bank or other financial institution and is essentially the same as a short-term loan.

Accepted Answer

A) True 
 B)False

The use of automatic pre-authorized monthly bill payment

When two or more people get together for the purpose of circumventing prescribed controls, it is called

A bank overdraft occurs

From an internal control standpoint, the asset most susceptible to improper diversion and use is

If a company deposits all its receipts in the bank and pays all its bills by cheque, then the monthly bank statement balance will always agree with the company's record of its chequing account balance.

Having one person receive all cash and a different person post to the Accounts Receivable account in the general ledger is an example of

Employees sometimes commit fraud because of too much debt. This is considered an opportunity to commit fraud.

Jian Hua Dong filled up her vehicle using her debit card. The cost of the fill up was $50. Each time a customer uses a debit card Petro Canada is charged a transaction fee of $0.50. The entry to record the transaction by Petro Canada is

When one person is responsible for all related activities, the potential for errors and irregularities increases.

A debit card gives customers access to money made available by a bank or other financial institution and is essentially the same as a short-term loan.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Long-Lived Assets

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters

Exam 7: Internal Control and Cash

The use of automatic pre-authorized monthly bill payment

When two or more people get together for the purpose of circumventing prescribed controls, it is called

A bank overdraft occurs

From an internal control standpoint, the asset most susceptible to improper diversion and use is

If a company deposits all its receipts in the bank and pays all its bills by cheque, then the monthly bank statement balance will always agree with the company's record of its chequing account balance.

Having one person receive all cash and a different person post to the Accounts Receivable account in the general ledger is an example of

Employees sometimes commit fraud because of too much debt. This is considered an opportunity to commit fraud.

Jian Hua Dong filled up her vehicle using her debit card. The cost of the fill up was $50. Each time a customer uses a debit card Petro Canada is charged a transaction fee of $0.50. The entry to record the transaction by Petro Canada is

When one person is responsible for all related activities, the potential for errors and irregularities increases.

A debit card gives customers access to money made available by a bank or other financial institution and is essentially the same as a short-term loan.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Long-Lived Assets

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters