ACCT 212 Week 3 Quiz Ques

ACCT 212 Week 3 Quiz Ques | Devry University 

Question 1

 (CO 5) The type of fraud committed by employees of an entity who steal money from the company and cover it up through erroneous entries in the books is called  

A.      misappropriation of assets.  

B.      fraudulent financial reporting.  

C.      embezzlement.  

D.      collusion.

Question 2

 (CO 5) Fraudulent financial reporting  

A.      is committed by lower level employees of a company.  

B.      makes the company appear in poor financial condition.  

C.      deceives investors and creditors.  

D.      involves stealing cash or inventory from the company

Question 3

 (CO 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  

A.      prevent embezzlement.  

B.      prevent collusion.  

C.      ensure accurate, reliable external audits.  

D.      ensure accurate, reliable accounting records.

Question 4

 (CO 5) A fidelity bond is a(n)  

A.      employment contract for a specified period of time.  

B.      insurance policy that reimburses a company for employee theft.  

C.      contract prohibiting former employees from working for a competitor.  

D.      promise by a company to safeguard customers' personal information.

Question 5

 (CO 5) Proper separation of duties and physical safeguards to protect assets from theft are part of a company's

A.      information system.  

B.      control procedures.  

C.      control monitoring.  

D.      personnel maintenance.

Question 6

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

A.      Encryption  

B.      Firewall

C.      Security wall 

D.      Access device

Question 7

 (CO 5) When preparing a bank reconciliation, which of the following items should be added to the book balance?  

A.      EFT receipts  

B.      Deposits in transit  

C.      Collection items  

D.      Both EFT receipts and collection items

Question 8

 (CO 5) Cash requires specific internal controls because

A.      cash is one of the most difficult assets to steal.  

B.      cash is difficult to convert to other forms of wealth.  

C.      all transactions ultimately affect cash.  

D.      cash is difficult to conceal.

Question 9

 (CO 5) Notes receivables due within 1 year or operating cycle, whichever is longer, are classified as  

A.      current liabilities.  

B.      long-term liabilities.  

C.      long-term investments.  

D.      current assets.

Question 10

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

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

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

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

D.      no discount is offered for early payment.