Copyright

Internal Controls in Accounting: Homework Help Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. GAAP standards require that a(n) _____ be included in the notes to the financial statements.

Question 2 2. What is the law that protects investors from fraudulent accounting activity?

Question 3 3. A company's financial statements include an income statement, a statement of retained earnings, a statement of cash flows and a _____.

Question 4 4. What year was the Sarbanes-Oxley Act enacted?

Question 5 5. Outstanding debits are _______________ to the bank statement balance.

Page 2

Question 6 6. In her role as an accountant for ABC Manufacturing Janis has uncovered a pattern of errors made by one clerk in the parts department. How should Janis handle this situation?

Question 7 7. Which of the following is an example of a cash equivalent?

Question 8 8. How is the acronym WISE used to describe the reasons behind earnings management?

Question 9 9. The _____ creates the guidelines that all accounting professionals must follow in order to produce accurate and reliable financial statements.

Question 10 10. Two people have differing opinions on the reporting period for a company's income. What typical problem are they most likely experiencing with their financial information?

Page 3

Question 11 11. In order to perform a bank reconciliation you will need the check register and which of the following?

Question 12 12. How quickly something can be turned into cash refers to its _____.

Question 13 13.

A company has the following information:

$10,000 in the bank; $25,000 in 90 day CDs; $15,000 in 1 year bonds; $5,000 in money orders; $30,000 in real estate

How much cash and cash equivalents does the company have on-hand?

Question 14 14. What is the term for balancing a company's cash account to its bank account?

Question 15 15. What are checks or withdrawals that are recorded in the cash account but have not yet been recorded in the bank account?

Page 4

Question 16 16. A scandal involving _____ is a prime example of why the Sarbanes-Oxley Act was needed.

Question 17 17. The information found on the financial statements of a company that tells how good or bad a company is performing is called _____.

Question 18 18. To deliberately omit or misstate financial information with the intent of deceiving investors and creditors is _____.

Question 19 19. What is the business asset most vulnerable to fraudulent activity?

Question 20 20. The main goal of the SEC is _____.

Page 5

Question 21 21. Jan is the accounting manager for ABC Manufacturing. In her role she instructs newly hired accountants in the use of internal controls. Why would she stress the importance of accuracy when they are creating financial documents?

Question 22 22. Procedures that are put in place within an organization to ensure business is carried out in an orderly, effective and accurate manner are called _____.

Question 23 23. _____ are rules and regulations that are put into place to guard the assets owned by a person or a company.

Question 24 24. Which of the following is NOT a purpose of the Sarbanes-Oxley Act?

Question 25 25. How did the stock market crash of 1929 affect the creation of the Security and Exchange Commission?

Page 6

Question 26 26. The organization that oversees the audits of public companies is called the _____.

Question 27 27. Predict the type of earnings management technique that is used when managers plan certain events to occur in certain periods.

Question 28 28. The first step in the audit process requires that an auditor look at the manner in which financial documents are transferred to the accounting department. Why is this necessary?

Question 29 29. Ben, a company accountant, accidentally reported $5300 of earnings as $3500 on a company financial statement. Ben's mistake is an example of _____.

Question 30 30. Outstanding credits are _____ to the bank statement balance.

Internal Controls in Accounting: Homework Help Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Financial Accounting: Homework Help Resource  /  Business Courses
Support