Question 1

The control principle related to not having the same person authorize and pay for goods is known as

Accepted Answer

A)  establishment of responsibility. 
B)  independent internal verification. 
C)  separation of duties. 
D)  rotation of duties. 
A)  establishment of responsibility. 
B)  independent internal verification. 
C)  separation of duties. 
D)  rotation of duties.

Question 2

Electronic funds transfer (EFT) is a disbursement system that uses a telephone or a computer to transfer cash from one location to another.

Accepted Answer

A) True 
 B)False

Question 3

The principles of internal control activities are used

Accepted Answer

A)  in the U.S. but not globally. 
B)  internationally but not in the U.S. 
C)  in the U.S. and Canada but not globally. 
D)  globally. 
A)  in the U.S. but not globally. 
B)  internationally but not in the U.S. 
C)  in the U.S. and Canada but not globally. 
D)  globally.

Question 4

Maximum benefit from independent internal verification is obtained when

Accepted Answer

A)  it is made on a pre-announced basis. 
B)  it is done by the employee possessing custody of the asset. 
C)  discrepancies are reported to management. 
D)  it is done at the time of the audit. 
A)  it is made on a pre-announced basis. 
B)  it is done by the employee possessing custody of the asset. 
C)  discrepancies are reported to management. 
D)  it is done at the time of the audit.

Question 5

All of the following bank reconciliation items would result in an adjusting entry on the company's books except

Accepted Answer

A)  interest earned. 
B)  deposits in transit. 
C)  fee for collection of note by bank. 
D)  NSF check of customer. 
A)  interest earned. 
B)  deposits in transit. 
C)  fee for collection of note by bank. 
D)  NSF check of customer.

The control principle related to not having the same person authorize and pay for goods is known as

Electronic funds transfer (EFT) is a disbursement system that uses a telephone or a computer to transfer cash from one location to another.

The principles of internal control activities are used

Maximum benefit from independent internal verification is obtained when

All of the following bank reconciliation items would result in an adjusting entry on the company's books except

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Time Value of Money

Filters

Exam 7: Fraud, Internal Control, and Cash

The control principle related to not having the same person authorize and pay for goods is known as

Electronic funds transfer (EFT) is a disbursement system that uses a telephone or a computer to transfer cash from one location to another.

The principles of internal control activities are used

Maximum benefit from independent internal verification is obtained when

All of the following bank reconciliation items would result in an adjusting entry on the company's books except

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Time Value of Money

Filters