FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Fraud, Internal Control, and Cash

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Multiple Choice

Review LaterAdd Note

Review Later

When the petty cash fund is replenished:?

A) Cash is debited.
B) Petty Cash is credited.
C) Petty Cash is debited.
D) Appropriate expense accounts are debited.

E) A) and B)
F) B) and C)

Correct Answer

verified

Show Answer

Question 92

Multiple Choice

Review LaterAdd Note

Review Later

Restricted cash is reported:

A) separately as an asset on the balance sheet
B) together with cash and cash equivalents on the balance sheet
C) separately under stockholders' equity on the balance sheet
D) together with cash and cash equivalents on the income statement

E) A) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 93

True/False

Review LaterAdd Note

The fraud triangle identifies incentive,opportunity,and benchmarks as the requirements for a fraud to occur.

A company made a bank deposit on September 30 that did not appear on the bank statement dated September 30.In preparing the September 30 bank reconciliation,the company should: 

Cashiers at a supermarket have to talk to a manager before approving price changes at the register.Which internal control principle is being followed?

If a cashier rang up sales totaling $4,000,but had only $3,997 to deposit,which journal entry would be recorded? A debit to:

Describe each of the five components of an internal control system.  

Companies that must comply with the requirements of the Sarbanes-Oxley Act (SOX) include all:

If a company hires an auditor to check that the work done by others within the company is supported by documentation,it is doing so under the principle of control activities referred to as:

Which of the following statements concerning a voucher is not correct?

Which amount should be reported as cash on the balance sheet?

Which of the following is not a category of employee fraud?

Choose the appropriate letter to match the term and the definition.There are more definitions than terms. Term 1.____ Fraud 2.____ Imprest System 3.____ Internal Control 4.____ Loan Covenants 5.____ Sarbanes-Oxley Act (SOX) 6.____ Segregation of Duties 7.____ Voucher System Definition A.A process for approving and documenting all purchases and payments on account. B.A process that controls the amount paid to others by limiting the total amount of money available for making payments to others. C.A set of regulations passed by Congress in 2002 in an attempt to improve financial reporting and restore investor confidence. D.Actions taken to promote efficient and effective operations,protect assets,enhance accounting information,and adhere to laws and regulations. E.An attempt to deceive others for personal gain. F.An internal control designed into the accounting system to prevent an employee from making a mistake or committing a dishonest act as part of one assigned duty and then also covering it up through another assigned duty. G.An internal report prepared to verify the accuracy of both the bank statement and the cash accounts of a business or individual. H.Another name for bounced checks.They arise when the check writer (your customer)does not have sufficient funds to cover the amount of the check. I.Money or any instrument that banks will accept for deposit and immediately credit to a company's account. J.Not available for general use but rather restricted for a specific purpose. K.Short-term,highly liquid investments purchased within three months of maturity. L.Terms of a loan agreement that if broken,entitle the lender to renegotiate loan terms or force repayment.

The main purposes of internal controls include all of the following except:

When duties are properly segregated,the accounting department should compare the cash in the register with the cash count sheet.

Which of the following is not an example of internal control?

Cash sales rung up by cashiers totaled $117,000.Cash in the drawer was counted and found to be $119,000.The journal entry to record the day's sales would include a:

When a petty cash fund is in use: 

Mason Company gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation: -Use the information above to answer the following question.The up-to-date ending cash balance on October 31 is:

Which of the following is not a change introduced by the Sarbanes-Oxley Act?