ACCT212 Week 3 Quiz Latest 2017 November (all correct answers)

Question 1

3 / 3 pts

(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.

Question 2

3 / 3 pts

(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

Question 3

3 / 3 pts

(TCO 5) Internal control is a plan of organization and system of procedures implemented by company _____ and the _____ designed to accomplish five objectives.

internal auditors, employees

external auditors, management

management, board of directors

employees, board of directors

Question 4

3 / 3 pts

(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.

Question 5

3 / 3 pts

(TCO 5) Hints of where fraud, mistakes, or financial harm can occur in a company is called

the control environment.

risk assessment.

control procedures.

the tone at the top.

Question 6

3 / 3 pts

(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

Question 7

3 / 3 pts

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

EFT receipts

Deposits in transit

Collection items

Both EFT receipts and collection items

Question 8

3 / 3 pts

(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.

Question 9

0 / 3 pts

(TCO 5) Short-term investments

are reported after accounts receivable on the balance sheet.

are more liquid than cash.

are reported at historical cost on the balance sheet.

include trading securities.

Question 10

3 / 3 pts

(TCO 5) Which of the following is a true statement about sales?

Net revenue is gross revenue plus sales discounts less sales returns and allowances.

Sales discounts are offered to customers in order to speed up cash flow.

Sales returns and allowances increase a company's profit.

Retailers do not generally record sales returns and allowances in a separate account.