Question

Question 1 (2.5 points)

An internal control which focuses on laws and regulations, such as disbursing petty cash only for legitimate business activities/expenses?

Question 1 options: Reporting

Compliance

Opportunity

Incentives

Question 2 (2.5 points)

Company actions to promote efficient and effective operations, protect assets, enhance accounting information, and adhere to laws and regulations is the purpose of

Question 2 options: Internal controls

Compliance fundamentals

Sarbanes-Oxley Act

Securities and Exchange Commission

Question 3 (2.5 points)

Which of the following is one of the three categories of fraud:

Question 3 options: Opportunity

Incentive

Rationalization

Corruption

Question 4 (2.5 points)

When office supplies are purchased on account, which of the following is the correct journal entry prepared by the accounting department?

Question 4 options: Debit accounts receivable and credit accounts payable

Credit cash and debit office supplies

Debit cash and credit office supplies

Credit accounts payable and debit office supplies

Question 5 (2.5 points)

Which of the following is not one of the three factors of the fraud triangle

Question 5 options: Rationalization

Opportunity

Incentive

Corruption

Question 6 (2.5 points)

Samson Industries Corp has many dollar-store outlets in Texas. Each outlet has a policy preventing cash register clerks from preparing the nightly bank deposit slip. This preparation is completed the next business day by the store manager. This is an example of:

Question 6 options: Segregation of duties

Monitoring activities

Independent verification

Document procedures

Question 7 (2.5 points)

Which of the following transactions on a bank statement will require a debit to the “Cash” t-account (general ledger)?

Question 7 options: Deposit in transit

Non-sufficient funds check

Interest earned on the checking account average daily balance

Outstanding check

Question 8 (2.5 points)

The current assets of Wilbur Internet Services show a bank checking account of $10,000; a petty cash fund of $50; restricted cash on deposit of $1,000; short-term investments of $5,000 and inventory of $11,000. What is the correct cash and cash equivalent total?

Question 8 options: $16,050

$11,050

$27,050

$16,000

9

Dixie Insurance receives its bank statement and the following transactions all require a journal entry: $18 interest received on the average daily balance; $100 NSF check; $10 NSF bank service charge; and $15 bank regular service charge. Which of the following journal entries correctly records the NSF check?

Question 9 options: Debit cash and credit accounts receivable

Credit cash and debit accounts receivable

Credit cash and debit bank charges

Debit cash and credit interest revenue

10

Your purchasing department issues a purchase requisition for 500 pieces of springs at $.24 ea., your purchasing manager approves the requisition and issues a purchase order, but he corrects the cost to $.25 ea., as the price has increased since the requisition was prepared. What is the correct journal entry to record the purchase order?

Question 10 options: Debit parts expense $120 and credit cash for $120

Debit parts expense $120 and credit accounts payable for $120

Either a. or b. is possible

Neither a. nor b. is correct

Answer 1

Question 1 (2.5 points)

An internal control which focuses on laws and regulations, such as disbursing petty cash only for legitimate business activities/expenses?

Ans: Reporting

Solution: The objective of internal Control is to maintain the optimum utilization of resources with utmost care to prevent fraud and malpractices. it is a step taken by management.

Question 2 (2.5 points)

Company actions to promote efficient and effective operations, protect assets, enhance accounting information, and adhere to laws and regulations is the purpose of

Ans: Internal controls

Solution:

The objective of internal Control is to maintain the optimum utilization of resources with utmost care to prevent fraud and malpractices. it is a step taken by management to prevent fraud and malpractices.

Question 3 (2.5 points)

Which of the following is one of the three categories of fraud:

Ans: Corruption

Solution: There are three types of fraud:

1. Asset Misappropriation
2. Bribery and Corruption
3. Financial Statement Fraud

Question 4 (2.5 points)

When office supplies are purchased on account, which of the following is the correct journal entry prepared by the accounting department?

Ans: Credit accounts payable and debit office supplies

Solution: Official Supplies (Purchase A/C) Type: Nominal Account- Dr: All Expenses and Losses

Accounts Payable: Type: Personal A/C: Cr: the Giver

Question 5 (2.5 points)

Which of the following is not one of the three factors of the fraud triangle

Ans: Corruption

Explanation; fraud triangle includes the following:

1. Pressure: Incentives to commit Fraud
2. Rationalization
3. Opportunity

Question 6 (2.5 points)

Samson Industries Corp has many dollar-store outlets in Texas. Each outlet has a policy preventing cash register clerks from preparing the nightly bank deposit slip. This preparation is completed the next business day by the store manager. This is an example of:

Ans: Document procedures

Explanation: Self Explanatory in question

Question 7 (2.5 points)

Which of the following transactions on a bank statement will require a debit to the “Cash” t-account (general ledger)?

Question 7 options: Deposit in transit

Non-sufficient funds check

Interest earned on the checking account average daily balance

Outstanding check

Question 8 (2.5 points)

The current assets of Wilbur Internet Services show a bank checking account of $10,000; a petty cash fund of $50; restricted cash on deposit of $1,000; short-term investments of $5,000 and inventory of $11,000. What is the correct cash and cash equivalent total?

Ans: $16,050

Explanation:

Cash and Cash Equivalent = Bank balance + Petty cash Fund + Cash on Deposit+ Short term Investment

= $10000+ $50+$1000+$5000

= $16050

9

Dixie Insurance receives its bank statement and the following transactions all require a journal entry: $18 interest received on the average daily balance; $100 NSF check; $10 NSF bank service charge; and $15 bank regular service charge. Which of the following journal entries correctly records the NSF check?

Question 9 options: Debit cash and credit accounts receivable

Credit cash and debit accounts receivable

Credit cash and debit bank charges

Debit cash and credit interest revenue

10

Your purchasing department issues a purchase requisition for 500 pieces of springs at $.24 ea., your purchasing manager approves the requisition and issues a purchase order, but he corrects the cost to $.25 ea., as the price has increased since the requisition was prepared. What is the correct journal entry to record the purchase order?

Question 10 options: Debit parts expense $120 and credit cash for $120

Debit parts expense $120 and credit accounts payable for $120

Either a. or b. is possible

Neither a. nor b. is correct