Quiz
Chapter 8
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Questions in this quiz (14)
1Which of the following is not an element of the fraud triangle?
- ARationalization.
- BSegregation of duties.
- CFinancial pressure.
- DOpportunity.
2An organization uses internal control to enhance the accuracy and reliability of accounting records and to:
- Asafeguard assets.
- Beliminate fraud.
- Cproduce correct financial statements.
- Ddeter employee dishonesty.
3Which of the following was not a result of the Sarbanes-Oxley Act?
- ACompanies must file financial statements with the Internal Revenue Service.
- BAll publicly traded companies must maintain adequate internal controls.
- CThe Public Company Accounting Oversight Board was created to establish auditing standards and regulate auditor activity.
- DCorporate executives and board of directors must ensure that controls are reliable and effective, and they can be fined or imprisoned for failure to do so.
4The principles of internal control do not include:
- Aestablishment of responsibility.
- Bdocumentation procedures.
- Cmanagement responsibility.
- Dindependent internal verification.
5Physical controls do not include:
- Asafes and vaults to store cash.
- Bindependent bank reconciliations.
- Clocked warehouses for inventories.
- Dbank safety deposit boxes for important papers.
6Which of the following control activities is not relevant when a company uses a computerized (rather than manual) accounting system?
- AEstablishment of responsibility.
- BSegregation of duties.
- CIndependent internal verification.
- DAll of these control activities are relevant to a computerized system.
7Permitting only designated personnel to handle cash receipts is an application of the principle of:
- Asegregation of duties.
- Bestablishment of responsibility.
- Cindependent internal verification.
- Dhuman resource controls.
8The use of prenumbered checks in disbursing cash is an application of the principle of:
- Aestablishment of responsibility.
- Bsegregation of duties.
- Cphysical controls.
- Ddocumentation procedures.
9A company writes a check to replenish a $100 petty cash fund when the fund contains receipts of $94 and $4 in cash. In recording the check, the company should:
- Adebit Cash Over and Short for $2.
- Bdebit Petty Cash for $94.
- Ccredit Cash for $94.
- Dcredit Petty Cash for $2.
10The control features of a bank account do not include:
- Ahaving bank auditors verify the correctness of the bank balance per books.
- Bminimizing the amount of cash that must be kept on hand.
- Cproviding a double record of all bank transactions.
- Dsafeguarding cash by using a bank as a depository.
11In a bank reconciliation, deposits in transit are:
- Adeducted from the book balance.
- Badded to the book balance.
- Cadded to the bank balance.
- Ddeducted from the bank balance.
12The reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor is:
- Aoutstanding checks.
- Bdeposit in transit.
- Ca bank error.
- Dbank service charges.
13Which of the following items in a cash drawer at November 30 is not cash?
- AMoney orders.
- BCoins and currency.
- CAn NSF check.
- DA customer check dated November 28.
14Which of the following statements correctly describes the reporting of cash?
- ACash cannot be combined with cash equivalents.
- BRestricted cash funds may be combined with cash.
- CCash is listed first in the current assets section.
- DRestricted cash funds cannot be reported as a current asset.
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- 221 Principles of Accounting I Quiz on Chapter 8, created by Emily Christisen on 11/05/2016.
- Author
- Emily Christisen
- Language
- English
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