Question 1

Based on the fraud triangle, the chance to commit a fraud, conceal it, and avoid punishment is an example of __________.

Accepted Answer

perceived opportunity

Question 2

Mike Fences, a controller, has an accounting staff of ten. Jeremy, his accounts payable supervisor, never takes more than an occasional day of vacation. The employee is very hard working, and likes to receive the cash payout for vacation. This works well for Mike; it reduces his expenses and the other employees do not have to be trained to help out in his absence.
Do you agree with Mike?

Accepted Answer

Vacations should be mandatory. Employees should be required to take annual vacations. If an employee knows someone else is performing his or her tasks while on vacation, there is less risk of fraud. This is part of the control activities element.

Question 3

Bank of Montreal collected a $450 note from a customer for Cyber Company. Prepaid the journal entry to record the transaction.

Accepted Answer

The answer of Bank of Montreal collected a $450 note...

Question 4

Safeguarding assets and ensuring proper reporting of financial information are two of the objectives of having an internal control system.

Accepted Answer

A) True 
 B)False

Question 5

Bank reconciliation is an important part of internal control that should be performed daily.

Accepted Answer

A) True 
 B)False

Question 6

The total of cash in the petty cash box plus the amount of the petty cash ticket receipts should total the beginning amount of the petty cash fund.

Accepted Answer

A) True 
 B)False

Question 7

The outcome of an audit is an audit opinion. There are four types of audit opinions. List the four types of options, and determine the preferred audit option.

Accepted Answer

Types of Audit Opinion
Preferr

Question 8

Which of the following would NOT be considered cash?

Accepted Answer

A)  Currency 
B)  Money market funds 
C)  Money orders 
D)  Chequing accounts 
E)  Cash 
A)  Currency 
B)  Money market funds 
C)  Money orders 
D)  Chequing accounts 
E)  Cash

Question 9

Under Sarbanes-Oxley, those officers signing off on the reports must have evaluated the company's internal control within the previous __________.

Accepted Answer

The answer of Under Sarbanes-Oxley, those officers signing off on...

Question 10

Northern Lights Inc. has a petty cash fund of $350. At the end of the September, $7.89 remains in the fund along with $340.56 in various receipts. Prepare the journal entry to replenish the fund.

Accepted Answer

The answer of Northern Lights Inc. has a petty cash...

Question 11

The journal entry to record the set-up of a petty cash fund is to debit Petty Cash and to credit Cash.

Accepted Answer

A) True 
 B)False

Question 12

Cash receipts should never be deposited more than once a business day.

Accepted Answer

A) True 
 B)False

Question 13

NSF cheque amounts are:

Accepted Answer

A)  added to the bank balance. 
B)  subtracted from the bank balance. 
C)  added to the book balance. 
D)  subtracted from the book balance. 
E)  not part of the bank reconciliation. 
A)  added to the bank balance. 
B)  subtracted from the bank balance. 
C)  added to the book balance. 
D)  subtracted from the book balance. 
E)  not part of the bank reconciliation.

Question 14

Outstanding cheques are:

Accepted Answer

A)  added to the book balance. 
B)  added to the bank balance. 
C)  subtracted from the book balance. 
D)  subtracted from the bank balance. 
E)  not part of the bank reconciliation. 
A)  added to the book balance. 
B)  added to the bank balance. 
C)  subtracted from the book balance. 
D)  subtracted from the bank balance. 
E)  not part of the bank reconciliation.

Question 15

Overbilling the company for parking fees or cab fare would be an example of a(n) __________.

Accepted Answer

The answer of Overbilling the company for parking fees or...

Question 16

A petty cash fund may be established for minor expenditures, such as postage.

Accepted Answer

A) True 
 B)False

Question 17

A good internal control system does which of the following?

Accepted Answer

A)  Guarantees the efficiency and effectiveness of operations 
B)  Reduces the risk of undetected errors 
C)  Provides absolute assurance that no errors will occur 
D)  Guarantees that fraud will be prevented 
E)  Reduces the risk of breaking the law 
A)  Guarantees the efficiency and effectiveness of operations 
B)  Reduces the risk of undetected errors 
C)  Provides absolute assurance that no errors will occur 
D)  Guarantees that fraud will be prevented 
E)  Reduces the risk of breaking the law

Question 18

Which of the following would be considered a cash equivalent?

Accepted Answer

A)  Currency 
B)  Time deposits 
C)  Cheques 
D)  Money orders 
E)  Cash 
A)  Currency 
B)  Time deposits 
C)  Cheques 
D)  Money orders 
E)  Cash

Question 19

Based on the situation, determine the type of opinion.

Accepted Answer

The answer of Based on the situation, determine the type...

Question 20

An organization's employees are responsible for the design and implementation of the internal control system.

Accepted Answer

A) True 
 B)False

Based on the fraud triangle, the chance to commit a fraud, conceal it, and avoid punishment is an example of __________.

Bank of Montreal collected a $450 note from a customer for Cyber Company. Prepaid the journal entry to record the transaction.

Safeguarding assets and ensuring proper reporting of financial information are two of the objectives of having an internal control system.

Bank reconciliation is an important part of internal control that should be performed daily.

The total of cash in the petty cash box plus the amount of the petty cash ticket receipts should total the beginning amount of the petty cash fund.

The outcome of an audit is an audit opinion. There are four types of audit opinions. List the four types of options, and determine the preferred audit option.

Which of the following would NOT be considered cash?

Under Sarbanes-Oxley, those officers signing off on the reports must have evaluated the company's internal control within the previous __________.

Northern Lights Inc. has a petty cash fund of $350. At the end of the September, $7.89 remains in the fund along with $340.56 in various receipts. Prepare the journal entry to replenish the fund.

The journal entry to record the set-up of a petty cash fund is to debit Petty Cash and to credit Cash.

Cash receipts should never be deposited more than once a business day.

NSF cheque amounts are:

Outstanding cheques are:

Overbilling the company for parking fees or cab fare would be an example of a(n) __________.

A petty cash fund may be established for minor expenditures, such as postage.

A good internal control system does which of the following?

Which of the following would be considered a cash equivalent?

Based on the situation, determine the type of opinion.

An organization's employees are responsible for the design and implementation of the internal control system.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters

Exam 4: Ethics, Internal Control, and Cash

Based on the fraud triangle, the chance to commit a fraud, conceal it, and avoid punishment is an example of __________.

Bank of Montreal collected a $450 note from a customer for Cyber Company. Prepaid the journal entry to record the transaction.

Safeguarding assets and ensuring proper reporting of financial information are two of the objectives of having an internal control system.

Bank reconciliation is an important part of internal control that should be performed daily.

The total of cash in the petty cash box plus the amount of the petty cash ticket receipts should total the beginning amount of the petty cash fund.

The outcome of an audit is an audit opinion. There are four types of audit opinions. List the four types of options, and determine the preferred audit option.

Which of the following would NOT be considered cash?

Under Sarbanes-Oxley, those officers signing off on the reports must have evaluated the company's internal control within the previous __________.

Northern Lights Inc. has a petty cash fund of $350. At the end of the September, $7.89 remains in the fund along with $340.56 in various receipts. Prepare the journal entry to replenish the fund.

The journal entry to record the set-up of a petty cash fund is to debit Petty Cash and to credit Cash.

Cash receipts should never be deposited more than once a business day.

NSF cheque amounts are:

Outstanding cheques are:

Overbilling the company for parking fees or cab fare would be an example of a(n) __________.

A petty cash fund may be established for minor expenditures, such as postage.

A good internal control system does which of the following?

Which of the following would be considered a cash equivalent?

Based on the situation, determine the type of opinion.

An organization's employees are responsible for the design and implementation of the internal control system.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters