Exam 10: Expenditures Processes and Controlspayroll and Fixed Assets

A company must have systems in place to take care of all activities related to both routine and nonroutine processes.The activities would include all of the following, except:

The record detailing the amounts and timing of depreciation for all fixed asset categories, except land and any construction-in-progress accounts, is called:

The internal control process of requiring the check of the fixed asset subsidiary ledger and depreciation schedule for mathematical accuracy and agreement with authorized documentation, will help to minimize the risk of:

Which of the following correctly lists activities of the Payroll Process in chronological order?

Activities involved with the fixed assets disposal phase of the fixed assets processes include all of the following, except:

This type of transaction is one that a business encounters on a regular, recurring basis.The volume of the transactions is so large that transactions and the related accounting activities become second nature to the employees responsible for handling them.Specific authorization for each of these transactions is not necessary.The type of transaction referred to is:

A payroll voucher

Which of the following is not an advantage of fixed asset software systems when compared with spreadsheets?

The first part of the strict approval process for high-dollar fixed assets is the investment analysis.Which of the following is part of that analysis?

The document is prepared in order to map out the jobs and reporting relationships within an organization.This may include only top branches of an organization or may include all positions within the company.

Personnel records will typically include all of the following, except:

Which of the following departments or positions most likely would approve changes in pay rates and deductions from employee salaries?

When accounting software is used to prepare the periodic payroll, which of the following items is necessary to input for each employee?

Clues that a ghost employee may exist in the company would include all of the following, except:

The internal control activity requiring that the manager approves payroll prior to signing paycheck is intended to minimize the risk of:

For each transaction cycle and each type of transaction, there are internal controls that help to minimize certain risk to the company.Using the terminology and framework developed in the text, describe the following for the Payroll Process cycle.

The internal control process of requiring physical controls in place in areas where fixed assets are held, will help to minimize the risk of:

This document authorizes the transfer of cash from the company's main operating account into the payroll cash account.

Internal control activities within the payroll process, identified as authorization, would include which of the following?

Which of the following reviews would be most likely to indicate that a company's property, plant, and equipment accounts are not understated?