Question 1

Which of the following is not a reasonable control for fixed assets?

Accepted Answer

A)  Proper authorization is required for acquisition and disposal of fixed assets. 
B)  Fixed asset records show the location of each asset. 
C)  Fully depreciated assets are immediately disposed of. 
D)  Depreciation policies are in writing. 
A)  Proper authorization is required for acquisition and disposal of fixed assets. 
B)  Fixed asset records show the location of each asset. 
C)  Fully depreciated assets are immediately disposed of. 
D)  Depreciation policies are in writing.

Question 2

Describe an internal control that would prevent the payment of insurance premiums on an automobile that is no longer owned by the company.

Accepted Answer

Perform an annual physical inv

Question 3

Fixed asset accounting systems include cost allocation and matching procedures that are not part of routine expenditure systems.

Accepted Answer

A) True 
 B)False

Question 4

Because a time clock is used, no supervision is required when employees enter and leave the work place.

Accepted Answer

A) True 
 B)False

Question 5

Why should the employee's supervisor not distribute paychecks?

Accepted Answer

A form of payroll fraud involv

Question 6

Describe three process controls that pertain to payroll application logic.

Accepted Answer

1. ERROR MESSAGES. Any mismatch when pos

Question 7

Employee paychecks should be drawn against a special checking account.

Accepted Answer

A) True 
 B)False

Question 8

In a manufacturing firm, employees use time cards and job tickets. Which of the following statements is not correct?

Accepted Answer

A)  Job tickets are prepared by employees for each job worked on, so an employee may have more that one job ticket on a given day. 
B)  An individual employee will have only one time card. 
C)  The time reported on job tickets should reconcile with the time reported on time cards. 
D)  Paychecks should be prepared from the job tickets. 
A)  Job tickets are prepared by employees for each job worked on, so an employee may have more that one job ticket on a given day. 
B)  An individual employee will have only one time card. 
C)  The time reported on job tickets should reconcile with the time reported on time cards. 
D)  Paychecks should be prepared from the job tickets.

Question 9

How do Fixed Asset Systems differ from the expenditure cycle?

Accepted Answer

The fixed asset system processes nonrout

Question 10

Inventory control performs the formal record keeping function for fixed assets.

Accepted Answer

A) True 
 B)False

Question 11

The paymaster distributes paychecks to work center supervisors.

Accepted Answer

A) True 
 B)False

Question 12

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Accepted Answer

A) True 
 B)False

Question 13

Accounting records that provide the audit trail for payroll include all of the following except

Accepted Answer

A)  time cards 
B)  job tickets 
C)  payroll register 
D)  accounts payable register 
A)  time cards 
B)  job tickets 
C)  payroll register 
D)  accounts payable register

Question 14

Outline the key steps taken in a basic technology payroll system when preparing the weekly payroll for a manufacturing firm.

Accepted Answer

Personnel action and time and attendance

Question 15

Authorization to dispose of fixed assets should be issued by the user of the asset.

Accepted Answer

A) True 
 B)False

Question 16

Ideally, payroll checks are written on a special bank account used only for payroll.

Accepted Answer

A) True 
 B)False

Question 17

To improve internal control, paychecks should be distributed by the employee's supervisor.

Accepted Answer

A) True 
 B)False

Question 18

Depreciation records include all of the following information about fixed assets except

Accepted Answer

A)  the economic benefit of purchasing the asset 
B)  the cost of the asset 
C)  the depreciation method being used 
D)  the location of the asset 
A)  the economic benefit of purchasing the asset 
B)  the cost of the asset 
C)  the depreciation method being used 
D)  the location of the asset

Question 19

Most small organizations integrate payroll processing with the human resource management (HRM) system.

Accepted Answer

A) True 
 B)False

Question 20

Describe several technologies developed for producing the time and attendance fil in a modern business with telecommuting employees working from multiple locations.

Accepted Answer

Biometric time clocks verify employees'

Which of the following is not a reasonable control for fixed assets?

Describe an internal control that would prevent the payment of insurance premiums on an automobile that is no longer owned by the company.

Fixed asset accounting systems include cost allocation and matching procedures that are not part of routine expenditure systems.

Because a time clock is used, no supervision is required when employees enter and leave the work place.

Why should the employee's supervisor not distribute paychecks?

Describe three process controls that pertain to payroll application logic.

Employee paychecks should be drawn against a special checking account.

In a manufacturing firm, employees use time cards and job tickets. Which of the following statements is not correct?

How do Fixed Asset Systems differ from the expenditure cycle?

Inventory control performs the formal record keeping function for fixed assets.

The paymaster distributes paychecks to work center supervisors.

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Accounting records that provide the audit trail for payroll include all of the following except

Outline the key steps taken in a basic technology payroll system when preparing the weekly payroll for a manufacturing firm.

Authorization to dispose of fixed assets should be issued by the user of the asset.

Ideally, payroll checks are written on a special bank account used only for payroll.

To improve internal control, paychecks should be distributed by the employee's supervisor.

Depreciation records include all of the following information about fixed assets except

Most small organizations integrate payroll processing with the human resource management (HRM) system.

Describe several technologies developed for producing the time and attendance fil in a modern business with telecommuting employees working from multiple locations.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

Financial Reporting, and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

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Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

Which of the following is not a reasonable control for fixed assets?

Describe an internal control that would prevent the payment of insurance premiums on an automobile that is no longer owned by the company.

Fixed asset accounting systems include cost allocation and matching procedures that are not part of routine expenditure systems.

Because a time clock is used, no supervision is required when employees enter and leave the work place.

Why should the employee's supervisor not distribute paychecks?

Describe three process controls that pertain to payroll application logic.

Employee paychecks should be drawn against a special checking account.

In a manufacturing firm, employees use time cards and job tickets. Which of the following statements is not correct?

How do Fixed Asset Systems differ from the expenditure cycle?

Inventory control performs the formal record keeping function for fixed assets.

The paymaster distributes paychecks to work center supervisors.

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Accounting records that provide the audit trail for payroll include all of the following except

Outline the key steps taken in a basic technology payroll system when preparing the weekly payroll for a manufacturing firm.

Authorization to dispose of fixed assets should be issued by the user of the asset.

Ideally, payroll checks are written on a special bank account used only for payroll.

To improve internal control, paychecks should be distributed by the employee's supervisor.

Depreciation records include all of the following information about fixed assets except

Most small organizations integrate payroll processing with the human resource management (HRM) system.

Describe several technologies developed for producing the time and attendance fil in a modern business with telecommuting employees working from multiple locations.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

Financial Reporting, and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

Filters