Question 1

Internal reports do not include:

Accepted Answer

A) Balance sheets 
B) Sales reports 
C) Cash flows 
D) Inventory status reports 
A) Balance sheets 
B) Sales reports 
C) Cash flows 
D) Inventory status reports A

Question 2

Investment processes:

Accepted Answer

A) Issue stock 
B) Issue bonds 
C) Purchase fixed assets 
D) Invest excess funds 
A) Issue stock 
B) Issue bonds 
C) Purchase fixed assets 
D) Invest excess funds D

Question 3

The ________ _______ provide(s) details for all the account within the chart of accounts and are (is) the entire set of T-accounts for the organization.

Accepted Answer

A) Trial balance 
B) Adjust entries 
C) Financial statements 
D) General ledger 
A) Trial balance 
B) Adjust entries 
C) Financial statements 
D) General ledger D

Question 4

Which of the following statements is most true? In a properly controlled system of administrative and reporting functions:

Accepted Answer

A) Employees have access to related assets or source documents, and on processes such as sales and cash receipts employees are given general authorization to initiate and process transactions. 
B) Employees have access to related assets or source documents, administrative processes are tightly controlled by supervisors, and on processes such as sales and cash receipts employees are given general authorization to initiate and process transactions. 
C) On processes such as sales and cash receipts, employees are given general authorization to initiate and process transactions. 
D) Employees have access to related assets or source documents and employees have the authority to initiate processes such as investing. 
A) Employees have access to related assets or source documents, and on processes such as sales and cash receipts employees are given general authorization to initiate and process transactions. 
B) Employees have access to related assets or source documents, administrative processes are tightly controlled by supervisors, and on processes such as sales and cash receipts employees are given general authorization to initiate and process transactions. 
C) On processes such as sales and cash receipts, employees are given general authorization to initiate and process transactions. 
D) Employees have access to related assets or source documents and employees have the authority to initiate processes such as investing.

Question 5

Special journals are:

Accepted Answer

A) Utilized for infrequent special journal entries 
B) For regular and recurring transactions 
C) Not utilized in automated accounting processes 
D) Often the source of information regarding a specific customer 
A) Utilized for infrequent special journal entries 
B) For regular and recurring transactions 
C) Not utilized in automated accounting processes 
D) Often the source of information regarding a specific customer

Question 6

Select the correct statement from those listed below:

Accepted Answer

A) Issuance of bonds and the origination of loans are considered debt, while the issuance of stock is considered equity. 
B) Issuance of bonds and the origination of loans are considered debt, while the issuance of stock is considered revenue. 
C) Issuance of bonds, the origination of loans, and the issuance of stock are all considered debt. 
D) Issuance of bonds, the origination of loans, and the issuance of stock are all considered equity. 
A) Issuance of bonds and the origination of loans are considered debt, while the issuance of stock is considered equity. 
B) Issuance of bonds and the origination of loans are considered debt, while the issuance of stock is considered revenue. 
C) Issuance of bonds, the origination of loans, and the issuance of stock are all considered debt. 
D) Issuance of bonds, the origination of loans, and the issuance of stock are all considered equity.

Question 7

Select the answer that contains only external reports:

Accepted Answer

A) Balance sheet, income statement, cash flow statement 
B) Sales, balance sheet, income statement 
C) Balance sheet, income statement, aged receivables 
D) Sales, inventory, aged receivables 
A) Balance sheet, income statement, cash flow statement 
B) Sales, balance sheet, income statement 
C) Balance sheet, income statement, aged receivables 
D) Sales, inventory, aged receivables

Question 8

Items associated with debt do NOT include:

Accepted Answer

A) Interest 
B) Maturity date 
C) Dividends 
D) Changes in stockholdersâ€™ equity 
A) Interest 
B) Maturity date 
C) Dividends 
D) Changes in stockholdersâ€™ equity

Question 9

When special journals are utilized:

Accepted Answer

A) A general journal is not required. 
B) Segregation of duties is required. 
C) A general journal is still utilized for infrequent and unique journal entries. 
D) A general ledger is not required. 
A) A general journal is not required. 
B) Segregation of duties is required. 
C) A general journal is still utilized for infrequent and unique journal entries. 
D) A general ledger is not required.

Question 10

Segregation of duties:

Accepted Answer

A) Remains unchanged between computerized and manual accounting 
B) May be more difficult in less complex computerized accounting systems 
C) Is not a factor with computerized accounting systems 
D) Is not a factor with manual accounting systems 
A) Remains unchanged between computerized and manual accounting 
B) May be more difficult in less complex computerized accounting systems 
C) Is not a factor with computerized accounting systems 
D) Is not a factor with manual accounting systems

Question 11

Fraud associated with the capital and investment process is:

Accepted Answer

A) Generally the actions of the employees handling the cash as associated with transactions. 
B) Usually related to management fraud. 
C) Prevented by the use of electronic funds transfers. 
D) Usually not pursued by the Securities and Exchange Commission. 
A) Generally the actions of the employees handling the cash as associated with transactions. 
B) Usually related to management fraud. 
C) Prevented by the use of electronic funds transfers. 
D) Usually not pursued by the Securities and Exchange Commission.

Question 12

Select the correct statement from those listed below:

Accepted Answer

A) Investors and creditors use nonfinancial feedback to evaluate business performance. 
B) Internal managers need only nonfinancial feedback for proper planning and control of operations. 
C) Internal managers need reports at the same frequency as external users. 
D) Internal managers need much more frequent and detailed reports than external users. 
A) Investors and creditors use nonfinancial feedback to evaluate business performance. 
B) Internal managers need only nonfinancial feedback for proper planning and control of operations. 
C) Internal managers need reports at the same frequency as external users. 
D) Internal managers need much more frequent and detailed reports than external users.

Question 13

The transactions and resulting processes related to loans, bonds payable, and stock should be executed only when:

Accepted Answer

A) Received funds have been expended through the purchase of fixed assets. 
B) The transactions are completed. 
C) Top supervi authorize them. 
D) Top management or the board of directors authorize them. 
A) Received funds have been expended through the purchase of fixed assets. 
B) The transactions are completed. 
C) Top supervi authorize them. 
D) Top management or the board of directors authorize them.

Question 14

Which of the following statements is true?

Accepted Answer

A) Routine transactions are recorded in the general journal. 
B) Nonroutine transactions are entered in the general journal. 
C) Nonroutine transactions are recorded in a subsidiary ledger. 
D) Nonroutine transactions are recorded in a special journal. 
A) Routine transactions are recorded in the general journal. 
B) Nonroutine transactions are entered in the general journal. 
C) Nonroutine transactions are recorded in a subsidiary ledger. 
D) Nonroutine transactions are recorded in a special journal.

Question 15

Payroll transactions are considered:

Accepted Answer

A) Large-volume daily events 
B) Small-volume daily events 
C) Periodic events 
D) Intermittent or infrequent events 
A) Large-volume daily events 
B) Small-volume daily events 
C) Periodic events 
D) Intermittent or infrequent events

Question 16

Raw material events can be found in which two processes?

Accepted Answer

A) (1) Revenue and return processes, systems & controls and (2) expenditures and return processes, systems & controls 
B) (1) Expenditures and return processes, systems & controls and (2) conversion processes, systems & controls 
C) (1) Conversion processes, systems & controls and (2) administrative processes, systems & controls 
D) (1) Administrative processes, systems & controls and (2) revenue and return processes, systems & controls 
A) (1) Revenue and return processes, systems & controls and (2) expenditures and return processes, systems & controls 
B) (1) Expenditures and return processes, systems & controls and (2) conversion processes, systems & controls 
C) (1) Conversion processes, systems & controls and (2) administrative processes, systems & controls 
D) (1) Administrative processes, systems & controls and (2) revenue and return processes, systems & controls

Question 17

When transactions are posted in a computerized accounting system:

Accepted Answer

A) The user must post all transactions awaiting in the module. 
B) Segregation of duties is not a factor. 
C) The user can select which batches of transactions to post. 
D) Anyone with general ledger access can post the transactions. 
A) The user must post all transactions awaiting in the module. 
B) Segregation of duties is not a factor. 
C) The user can select which batches of transactions to post. 
D) Anyone with general ledger access can post the transactions.

Question 18

Regarding subsidiary ledgers and general ledger control accounts, which of the following is NOT true?

Accepted Answer

A) Total balances in a subsidiary ledger should always equal the balance in the corresponding general ledger account. 
B) The general ledger maintains details of subaccounts. 
C) Control is enhanced by separating the subsidiary ledger from the general ledger. 
D) Reconciling a subsidiary ledger to the general ledger can help to detect errors or fraud. 
A) Total balances in a subsidiary ledger should always equal the balance in the corresponding general ledger account. 
B) The general ledger maintains details of subaccounts. 
C) Control is enhanced by separating the subsidiary ledger from the general ledger. 
D) Reconciling a subsidiary ledger to the general ledger can help to detect errors or fraud.

Question 19

Which of the following statements is FALSE?

Accepted Answer

A) As computerized accounting systems become more complex, there are usually fewer manual processes. 
B) With more automation in computerized accounting systems, responsibility for authorization gets moved to lower levels of employees. 
C) Approvals for each journal voucher are general authorizations instead of a specific authorization. 
D) None of the above are false. 
A) As computerized accounting systems become more complex, there are usually fewer manual processes. 
B) With more automation in computerized accounting systems, responsibility for authorization gets moved to lower levels of employees. 
C) Approvals for each journal voucher are general authorizations instead of a specific authorization. 
D) None of the above are false.

Question 20

Examples of employee-initiated fraud would NOT include:

Accepted Answer

A) The writing off uncollectible accounts of a friend even when it could be collected 
B) The inflation of hours worked on time card 
C) The release of false or misleading general purpose financial statements 
D) All answers are examples of employee-initiated fraud. 
A) The writing off uncollectible accounts of a friend even when it could be collected 
B) The inflation of hours worked on time card 
C) The release of false or misleading general purpose financial statements 
D) All answers are examples of employee-initiated fraud.

Internal reports do not include:

Investment processes:

The __ _ provide(s) details for all the account within the chart of accounts and are (is) the entire set of T-accounts for the organization.

Which of the following statements is most true? In a properly controlled system of administrative and reporting functions:

Special journals are:

Select the correct statement from those listed below:

Select the answer that contains only external reports:

Items associated with debt do NOT include:

When special journals are utilized:

Segregation of duties:

Fraud associated with the capital and investment process is:

Select the correct statement from those listed below:

The transactions and resulting processes related to loans, bonds payable, and stock should be executed only when:

Which of the following statements is true?

Payroll transactions are considered:

Raw material events can be found in which two processes?

When transactions are posted in a computerized accounting system:

Regarding subsidiary ledgers and general ledger control accounts, which of the following is NOT true?

Which of the following statements is FALSE?

Examples of employee-initiated fraud would NOT include:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Auditing Information Technology-Based Processes

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Conversion Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters

Exam 12: Administrative Processes and Controls

Internal reports do not include:

Investment processes:

The ________ _______ provide(s) details for all the account within the chart of accounts and are (is) the entire set of T-accounts for the organization.

Which of the following statements is most true? In a properly controlled system of administrative and reporting functions:

Special journals are:

Select the correct statement from those listed below:

Select the answer that contains only external reports:

Items associated with debt do NOT include:

When special journals are utilized:

Segregation of duties:

Fraud associated with the capital and investment process is:

Select the correct statement from those listed below:

The transactions and resulting processes related to loans, bonds payable, and stock should be executed only when:

Which of the following statements is true?

Payroll transactions are considered:

Raw material events can be found in which two processes?

When transactions are posted in a computerized accounting system:

Regarding subsidiary ledgers and general ledger control accounts, which of the following is NOT true?

Which of the following statements is FALSE?

Examples of employee-initiated fraud would NOT include:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Auditing Information Technology-Based Processes

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Conversion Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters

The __ _ provide(s) details for all the account within the chart of accounts and are (is) the entire set of T-accounts for the organization.