Question 1

Select the true statement from the following:

Accepted Answer

A) Employee fraud is more prevalent in the routine processes.Management fraud is more prevalent in administrative processes and reporting. 
B) Employee fraud is less prevalent in the routine processes and administrative processes.Management fraud is more prevalent in operational processes and reporting. 
C) Employee fraud is less prevalent in the administrative processes.Management fraud is more prevalent in operational processes and reporting. 
D) Employee and managerial fraud is prevalent in the routine processes as well as the administrative processes and reporting equally. 
A) Employee fraud is more prevalent in the routine processes.Management fraud is more prevalent in administrative processes and reporting. 
B) Employee fraud is less prevalent in the routine processes and administrative processes.Management fraud is more prevalent in operational processes and reporting. 
C) Employee fraud is less prevalent in the administrative processes.Management fraud is more prevalent in operational processes and reporting. 
D) Employee and managerial fraud is prevalent in the routine processes as well as the administrative processes and reporting equally.

Question 2

In the case of a manual accounting system, wages and payroll deductions would not be posted to the general ledger until the ________ forwards a signed journal voucher, giving the authorization.

Accepted Answer

A) Accounting manager 
B) Controller 
C) Payroll department 
D) Upper management 
A) Accounting manager 
B) Controller 
C) Payroll department 
D) Upper management

Question 3

Which of the following is not true with regards to internal controls in the general ledger process?

Accepted Answer

A) General ledger employees should never have custody of assets that they record in the general ledger. 
B) A proper segregation of duties in a general ledger system is that general ledger functions should be segregated from special journal recording tasks. 
C) A proper segregation of duties in a general ledger system is that general ledger functions should be segregated from subsidiary ledger tasks. 
D) In a manual and automated accounting system, the same written authorization (signed sign off on a journal voucher) is required to process transactions in the general ledger. 
A) General ledger employees should never have custody of assets that they record in the general ledger. 
B) A proper segregation of duties in a general ledger system is that general ledger functions should be segregated from special journal recording tasks. 
C) A proper segregation of duties in a general ledger system is that general ledger functions should be segregated from subsidiary ledger tasks. 
D) In a manual and automated accounting system, the same written authorization (signed sign off on a journal voucher) is required to process transactions in the general ledger.

Question 4

Sales and sales returns can affect which journals?

Accepted Answer

A) Accounts receivable, accounts payable, inventory, and sales 
B) Accounts receivable, cash, inventory, and sales 
C) Accounts receivable, accounts payable, purchases, and inventory 
D) Sales, cash receipts, cash disbursements, inventory, and purchases 
A) Accounts receivable, accounts payable, inventory, and sales 
B) Accounts receivable, cash, inventory, and sales 
C) Accounts receivable, accounts payable, purchases, and inventory 
D) Sales, cash receipts, cash disbursements, inventory, and purchases

Question 5

Select the answer that contains only internal 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 6

Which of the following is NOT part of an administrative process?

Accepted Answer

A) The sale of stock 
B) The sale of bonds 
C) The write-off of bad debts 
D) The purchase of marketable securities 
A) The sale of stock 
B) The sale of bonds 
C) The write-off of bad debts 
D) The purchase of marketable securities

Question 7

The raising of capital:

Accepted Answer

A) Requires the complete and honest details of the utilization of the funds 
B) Should be supported by correct and factual financial statement values 
C) Should be supported by correct and factual financial statement footnotes 
D) All of the above are correct. 
A) Requires the complete and honest details of the utilization of the funds 
B) Should be supported by correct and factual financial statement values 
C) Should be supported by correct and factual financial statement footnotes 
D) All of the above are correct.

Question 8

Items associated with equity include all but:

Accepted Answer

A) Interest 
B) Maturity date 
C) Dividends 
D) Changes in stockholders' equity 
A) Interest 
B) Maturity date 
C) Dividends 
D) Changes in stockholders' equity

Question 9

Select the true statement from those given below:

Accepted Answer

A) Capital processes require top management approval while investment processes only require treasurer approval. 
B) Both the capital process and the investment process require only treasurer approval. 
C) Both the capital process and the investment process require top management approval. 
D) Neither the capital process nor the investment processes require top management approval. 
A) Capital processes require top management approval while investment processes only require treasurer approval. 
B) Both the capital process and the investment process require only treasurer approval. 
C) Both the capital process and the investment process require top management approval. 
D) Neither the capital process nor the investment processes require top management approval.

Question 10

The four general purpose financial statements are:

Accepted Answer

A) Generated at the end of each month 
B) Generated at the end of each fiscal period 
C) Distributed only to external users 
D) Distributed only to internal users 
A) Generated at the end of each month 
B) Generated at the end of each fiscal period 
C) Distributed only to external users 
D) Distributed only to internal users

Question 11

Which of the following statements about unethical or fraudulent behavior in an organization is true:

Accepted Answer

A) Unethical or fraudulent behavior within the administrative process can occur in administrative processing of an organization or in the reporting functions of an organization, and is much more likely to be initiated by management. 
B) Unethical or fraudulent behavior within the administrative process can occur in administrative processing of an organization or in the reporting functions of an organization, and is much more likely to be initiated by employees. 
C) Unethical or fraudulent behavior within the administrative process can occur in administrative processing of an organization and is much more likely to be initiated by management. 
D) Unethical or fraudulent behavior within the administrative process can occur in the reporting functions of an organization and is much more likely to be initiated by employees. 
A) Unethical or fraudulent behavior within the administrative process can occur in administrative processing of an organization or in the reporting functions of an organization, and is much more likely to be initiated by management. 
B) Unethical or fraudulent behavior within the administrative process can occur in administrative processing of an organization or in the reporting functions of an organization, and is much more likely to be initiated by employees. 
C) Unethical or fraudulent behavior within the administrative process can occur in administrative processing of an organization and is much more likely to be initiated by management. 
D) Unethical or fraudulent behavior within the administrative process can occur in the reporting functions of an organization and is much more likely to be initiated by employees.

Question 12

The proper sequence of events for the accounting cycle is:

Accepted Answer

A) Journalize, post, trial balance, adjusting entries, financial statements, and closing entries 
B) Journalize, post, trial balance, adjusting entries, closing entries, and financial statements 
C) Journalize, post, adjusting entries, trial balance, closing entries, and financial statements 
D) Trial balance, adjusting entries, journalize, post, closing entries, and financial statements 
A) Journalize, post, trial balance, adjusting entries, financial statements, and closing entries 
B) Journalize, post, trial balance, adjusting entries, closing entries, and financial statements 
C) Journalize, post, adjusting entries, trial balance, closing entries, and financial statements 
D) Trial balance, adjusting entries, journalize, post, closing entries, and financial statements

Question 13

Capital funds are acquired through the issuance of:

Accepted Answer

A) Bonds only 
B) Stocks and/or bonds 
C) Stocks only 
D) Debt instruments only 
A) Bonds only 
B) Stocks and/or bonds 
C) Stocks only 
D) Debt instruments only

Question 14

Security of source documents:

Accepted Answer

A) Is essential for both manual general ledger systems and IT accounting systems 
B) Is not a factor with IT accounting systems since thethe source documents are electronic images 
C) Is not a factor with manual general ledger systems since they are printed documents in archive files 
D) None of the options are correct. 
A) Is essential for both manual general ledger systems and IT accounting systems 
B) Is not a factor with IT accounting systems since thethe source documents are electronic images 
C) Is not a factor with manual general ledger systems since they are printed documents in archive files 
D) None of the options are correct.

Question 15

Studies show that:

Accepted Answer

A) For day-to-day operations, unit data is the critical element. 
B) For day-to-day operations general ledger dollar value is the critical element. 
C) The general ledger dollar values have little impact on long-term time horizons. 
D) For day-to-day operations, both unit data and general ledger dollar value are critical elements. 
A) For day-to-day operations, unit data is the critical element. 
B) For day-to-day operations general ledger dollar value is the critical element. 
C) The general ledger dollar values have little impact on long-term time horizons. 
D) For day-to-day operations, both unit data and general ledger dollar value are critical elements.

Question 16

Corrections to posting errors are made:

Accepted Answer

A) Before the first trial balance 
B) Only after the first trial balance 
C) When discovered 
D) Only when directed by top management 
A) Before the first trial balance 
B) Only after the first trial balance 
C) When discovered 
D) Only when directed by top management

Question 17

Audit trails:

Accepted Answer

A) Can proceed only from the source document to the journal entry 
B) Can proceed only from the journal entry to the source document 
C) Are only utilized by the CPA auditors 
D) Can be from the source document to the journal entry or from the journal entry to the source document 
A) Can proceed only from the source document to the journal entry 
B) Can proceed only from the journal entry to the source document 
C) Are only utilized by the CPA auditors 
D) Can be from the source document to the journal entry or from the journal entry to the source document

Question 18

Not-for-profit organizations would be interested in:

Accepted Answer

A) Cash flows, revenues, and expenditures 
B) Cash flows, funding sources, and expenditures 
C) Revenues, expenses, and funding sources 
D) Cash inflows, cash outflows, and profits 
A) Cash flows, revenues, and expenditures 
B) Cash flows, funding sources, and expenditures 
C) Revenues, expenses, and funding sources 
D) Cash inflows, cash outflows, and profits

Question 19

There are a number of increased reporting requirements as the result of Sarbanes-Oxley and IFRS.These requirements have made it imperative for companies to:

Accepted Answer

A) Adjust the systems and controls 
B) Collect additional information needed for compliance. 
C) Well organized with the right resources to carry out the new tasks. 
D) All of the above are required. 
A) Adjust the systems and controls 
B) Collect additional information needed for compliance. 
C) Well organized with the right resources to carry out the new tasks. 
D) All of the above are required.

Question 20

The four primary functions of corporate governance do not include:

Accepted Answer

A) Management oversight 
B) Inventory control 
C) Financial stewardship 
D) Ethical conduct 
A) Management oversight 
B) Inventory control 
C) Financial stewardship 
D) Ethical conduct

Select the true statement from the following:

In the case of a manual accounting system, wages and payroll deductions would not be posted to the general ledger until the ________ forwards a signed journal voucher, giving the authorization.

Which of the following is not true with regards to internal controls in the general ledger process?

Sales and sales returns can affect which journals?

Select the answer that contains only internal reports:

Which of the following is NOT part of an administrative process?

The raising of capital:

Items associated with equity include all but:

Select the true statement from those given below:

The four general purpose financial statements are:

Which of the following statements about unethical or fraudulent behavior in an organization is true:

The proper sequence of events for the accounting cycle is:

Capital funds are acquired through the issuance of:

Security of source documents:

Studies show that:

Corrections to posting errors are made:

Audit trails:

Not-for-profit organizations would be interested in:

There are a number of increased reporting requirements as the result of Sarbanes-Oxley and IFRS.These requirements have made it imperative for companies to:

The four primary functions of corporate governance do 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

Select the true statement from the following:

In the case of a manual accounting system, wages and payroll deductions would not be posted to the general ledger until the ________ forwards a signed journal voucher, giving the authorization.

Which of the following is not true with regards to internal controls in the general ledger process?

Sales and sales returns can affect which journals?

Select the answer that contains only internal reports:

Which of the following is NOT part of an administrative process?

The raising of capital:

Items associated with equity include all but:

Select the true statement from those given below:

The four general purpose financial statements are:

Which of the following statements about unethical or fraudulent behavior in an organization is true:

The proper sequence of events for the accounting cycle is:

Capital funds are acquired through the issuance of:

Security of source documents:

Studies show that:

Corrections to posting errors are made:

Audit trails:

Not-for-profit organizations would be interested in:

There are a number of increased reporting requirements as the result of Sarbanes-Oxley and IFRS.These requirements have made it imperative for companies to:

The four primary functions of corporate governance do 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