Recent Question

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 13 MATCHING 223. Match the items below by entering the appropriate code letter in the space provided. A. Prenumbered documents G. Bank signature card B. Custody of an asset should be kept H. Payee separate from the record-keeping I. Maker for that asset J. Canceled checks C. Cash registers, garment sensors K. NSF checks and burglar alarms are exam ...

Other / Other 28 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 12 COMPLETION STATEMENTS 206. Internal control consists of the related methods and measures adopted to ____________ its assets and enhance the ______________ and ______________ of its accounting records. 207. The three main factors that contribute to fraudulent activity are depicted by the _______________. 208. The principle of internal control that p ...

Other / Other 28 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 9 141. If a check correctly written and paid by the bank for $584 is incorrectly recorded on the company’s books for $548, the appropriate treatment on the bank reconciliation would be to a. deduct $36 from the book’s balance. b. add $36 to the book’s balance. c. deduct $36 from the bank’s balance. d. deduct $584 from the book’s ...

Other / Other 27 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 6 81. An employee authorized to sign checks should not record a. owner cash contributions. b. mail receipts. c. cash disbursement transactions. d. sales transactions. 82. A voucher system is a series of prescribed control procedures a. to check the credit worthiness of customers. b. designed to assure that disbursements by check are proper. c. which eli ...

Other / Other 27 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 3 21. A voucher system is used by many large companies as a means of controlling cash receipts. 22. The petty cash fund eliminates the need for a bank checking account. 23. Cash register overages are deposited in the petty cash fund and cash shortages are made-up from the petty cash fund. 24. A deposit ticket is a negotiable instrument that can be t ...

Other / Other 27 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 5 61. Physical controls to safeguard assets do not include a. cashier department supervisors. b. vaults. c. employee identification badges. d. security guards. 62. In large companies, the independent internal verification procedure is often assigned to a. computer operators. b. management. c. internal auditors. d. outside CPAs. 63. Maximum benefit ...

Other / Other 27 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 4 MULTIPLE CHOICE QUESTIONS 39. Which one of the following is not an objective of a system of internal controls? a. Safeguard company assets b. Overstate liabilities in order to be conservative c. Enhance the accuracy and reliability of accounting records d. Reduce the risks of errors 40. Internal controls are concerned with a. only manual systems of acco ...

Other / Other 27 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 10 BRIEF EXERCISES BE 168 Match the principle of internal control to each of the following cases. a) Establishment of responsibility b) Segregation of duties c) Accountability for assets d) Documentation procedures e) Physical controls 1. Cash is locked in a safe overnight. 2. Employees who receive shipments of goods do not have access to the accounti ...

Other / Other 27 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 7 101. Which one of the following is not necessarily a party to a check? a. Maker b. Buyer c. Payee d. Payer 102. A bank statement a. lets a depositor know the financial position of the bank as of a certain date. b. is a credit reference letter written by the depositor's bank. c. is a bill from the bank for services rendered. d. shows the activity which in ...

Other / Other 27 Oct 2016

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH COMPUTER S 230 CHAPTER 8 PART 8 121. If a check correctly written and paid by the bank for $427 is incorrectly recorded on the company's books for $472, the appropriate treatment on the bank reconciliation would be to a. add $45 to the bank's balance. b. add $45 to the book's balance. c. deduct $45 from the bank's balance. d. deduct $427 from the book's balance. 122. Notification by the ...

Other / Other 27 Oct 2016