Mahmoud Hemood
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Mahmoud Hemood
Creado por Mahmoud Hemood hace alrededor de 6 años
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Chapter 7 - Sarbanes Oxley, Internal Control, and Cash

Pregunta 1 de 24

1

SarbanesOxley applies to

Selecciona una de las siguientes respuestas posibles:

  • Publicly held companies

  • not for profit organizations

  • privately held businesses

  • all of these

Explicación

Pregunta 2 de 24

1

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

Selecciona una de las siguientes respuestas posibles:

  • the FASB

  • the IRS

  • Sarbanes Oxley

  • GAAP

Explicación

Pregunta 3 de 24

1

Which one of the following below is NOT an element of internal control?

Selecciona una de las siguientes respuestas posibles:

  • risk assessment

  • monitoring

  • information and communication

  • cost-benefit considerations

Explicación

Pregunta 4 de 24

1

The objectives of internal control are to

Selecciona una de las siguientes respuestas posibles:

  • control the internal organization of the accounting department personnel and equipment

  • provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with

  • prevent fraud, and promote the social interest of the company

  • provide control over "internal-use only" reports and employee internal conduct

Explicación

Pregunta 5 de 24

1

Which one of the following reflects a weak internal control system?

Selecciona una de las siguientes respuestas posibles:

  • all employees are well supervised

  • a single employee is responsible for comparing a receiving report to an invoice

  • all employees must take their vacations

  • a single employee is responsible for collecting and recording of cash

Explicación

Pregunta 6 de 24

1

When a firm uses internal auditors, it is adhering to which of the following internal control elements?

Selecciona una de las siguientes respuestas posibles:

  • Risk Assessment

  • Monitoring

  • Proofs and Security Measures

  • Information and Communication

Explicación

Pregunta 7 de 24

1

The portion of an invoice that is returned with payment is a

Selecciona una de las siguientes respuestas posibles:

  • remittance advice

  • voucher

  • debit memo

  • credit memo

Explicación

Pregunta 8 de 24

1

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called a(n)

Selecciona una de las siguientes respuestas posibles:

  • Invoice

  • Voucher

  • Debit Memo

  • Remittance Advice

Explicación

Pregunta 9 de 24

1

A voucher is usually supported by

Selecciona una de las siguientes respuestas posibles:

  • A Supplier's invoice

  • A purchase order

  • A receiving report

  • All of these

Explicación

Pregunta 10 de 24

1

Credit memos from the bank

Selecciona una de las siguientes respuestas posibles:

  • decrease a bank customer's account

  • are used to show a bank service charge

  • show that a company has deposited a customer's NSF check

  • show the bank has collected a note receivable for the customer

Explicación

Pregunta 11 de 24

1

A bank statement

Selecciona una de las siguientes respuestas posibles:

  • is a credit reference letter written by the company's bank

  • shows a company the financial position of the bank as of a certain date

  • is a bill from the bank for services rendered

  • shows the activity that increased or decreased the company's account balance

Explicación

Pregunta 12 de 24

1

The amount of deposits in transit is included on the bank reconciliation as a(n)

Selecciona una de las siguientes respuestas posibles:

  • deduction from the balance per the company's books

  • deduction from the balance per bank statement

  • addition to the balance per company books

  • addition to the balance per bank statement

Explicación

Pregunta 13 de 24

1

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)

Selecciona una de las siguientes respuestas posibles:

  • addition to the balance per company's records

  • deduction from the balance per bank statement

  • addition to the balance per bank statement

  • deduction from the balance per company's records

Explicación

Pregunta 14 de 24

1

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as a(n)

Selecciona una de las siguientes respuestas posibles:

  • addition to the balance per the company's records

  • addition to the balance per the bank statement

  • deduction from the balance per the bank statement

  • deduction from the balance per the company's records

Explicación

Pregunta 15 de 24

1

A bank reconciliation should be prepared periodically because

Selecciona una de las siguientes respuestas posibles:

  • the company's records and the bank's records are in agreement

  • the bank has not recorded all of its transactions

  • any differences between the company's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected

  • the bank must make sure that its records are correct

Explicación

Pregunta 16 de 24

1

Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is

Selecciona una de las siguientes respuestas posibles:

  • a deduction from the balance per company's records

  • an addition to the balance per bank statement

  • a deduction from the balance per bank statement

  • an addition to the balance per company's records

Explicación

Pregunta 17 de 24

1

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a(n)

Selecciona una de las siguientes respuestas posibles:

  • deduction from the balance per the company's records

  • addition to the balance per the bank statement

  • deduction from the balance per the bank statement

  • addition to the balance per the company's records

Explicación

Pregunta 18 de 24

1

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. This item would be included on the bank reconciliation as a(n)

Selecciona una de las siguientes respuestas posibles:

  • deduction from the balance per company's records

  • addition to the balance per bank statement

  • deduction from the balance per bank statement

  • addition to the balance per company's records

Explicación

Pregunta 19 de 24

1

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)

Selecciona una de las siguientes respuestas posibles:

  • deduction from the balance per company's records

  • addition to the balance per bank statement

  • deduction from the balance per bank statement

  • addition to the balance per company's records

Explicación

Pregunta 20 de 24

1

The amount of the outstanding checks is included on the bank reconciliation as a(n)

Selecciona una de las siguientes respuestas posibles:

  • deduction from the balance per company's records

  • addition to the balance per bank statement

  • deduction from the balance per bank statement

  • addition to the balance per company's records

Explicación

Pregunta 21 de 24

1

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)

Selecciona una de las siguientes respuestas posibles:

  • deduction from the balance per company's records

  • addition to the balance per bank statement

  • deduction from the balance per bank statement

  • addition to the balance per company's records

Explicación

Pregunta 22 de 24

1

Which of the following would be subtracted from the balance per books on a bank reconciliation?

Selecciona una de las siguientes respuestas posibles:

  • outstanding checks

  • deposits in transit

  • notes collected by the bank

  • error in recording a check for $732 as $723

Explicación

Pregunta 23 de 24

1

Cash equivalents include

Selecciona una de las siguientes respuestas posibles:

  • checks

  • coins and currency

  • money market accounts and commercial paper

  • stocks and short-term bonds

Explicación

Pregunta 24 de 24

1

Cash equivalents

Selecciona una de las siguientes respuestas posibles:

  • are illegal in some states

  • will be converted to cash within two years

  • will be converted to cash within 90 days

  • will be converted to cash within 120 days

Explicación

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