ACCT212 Quiz Week 3

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ACCT212 Quiz Week 3
(TCO 5) Internal controls are designed to accomplish five objectives: comply with legal requirements…

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ACCT212 Quiz Week 3

ACCT212 Quiz Week 3

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(TCO 5) The two most common types of fraud impacting financial statements are

Fraudulent financial reporting and e-commerce fraud.

Misappropriation of assets and embezzlement.

Fraudulent financial reporting and misappropriation of assets.

Cooking the books and fraudulent financial reporting.

(TCO 5) Fraud is the ultimate unethical act in business because

the perpetrators usually do so for their own short-term economic gain at the expense of others.

fraud is illegal

fraud violates the rights of many for the temporary betterment of a few.

All of the above

(TCO 5) Internal controls are designed to accomplish five objectives: comply with legal requirements, promote operational efficiency, safeguard assets, encourage employees to follow company policy, and

Prevent embezzlement.

Prevent collusion.

Ensure accurate, reliable external audits.

Ensure accurate, reliable accounting records.

(TCO 5) A fidelity bond is a(n)

Employment contract for a specified period of time.

Insurance policy that reimburses a company for employee theft.

Contract prohibiting former employees from working for a competitor.

Promise by a company to safeguard customers’ personal information.

(TCO 5) The information system component of internal control

Ensures that every system that processes accounting data should have the ability to capture transactions as they occur.

Monitors controls.

Offers hints of where fraud or errors could occur.

Ensures that the IT department has adequate control procedures in place to ensure that no one can hack into the company’s database.

(TCO 5) _____ rearranges messages by a mathematical formula making the message impossible to read by someone who does not know the code.

Encryption

Firewall

Security wall

Access device

(TCO 5) Deposits that have been recorded on the book, but have not yet been recorded by the bank are

Nonsufficient funds deposits.

Outstanding deposits.

Deposits in transit.

Electronic funds deposits.

(TCO 5) When a company receives cash by mail

All incoming mail containing cash receipts should be opened by the accounting department.

The mailroom sends all customer checks to the internal audit department.

The remittance advice goes to the accounting department for preparation of the journal entries.

The bank deposit is prepared by the mail room.

(TCO 5) Another name for short-term investments is

Equity investments.

Marketable securities.

Market investments.

Available-for-sale securities.

(TCO 5) A business offers credit terms of 1/15, n/30. These terms indicate that

The total amount of the invoice must be paid within 15 days.

A discount of 1% can be taken if the invoice is paid within 15 days.

The buyer can take a 1% discount if the bill is paid within 15 or 30 days.

No discount is offered for early payment.

ACCT212 Quiz Week 3

DeVry