Question 17 (2 points)Another name for temporary accounts is:

a

Balance column accounts.

b

Accrued accounts.

c

Contra accounts.

d

Nominal accounts.

e

Real accounts.

 

Question 18 (2 points)The closing process is necessary in order to:

a

ensure that management is aware of how well the company is operating.

b

calculate net income or net loss for an accounting period.

c

ensure that net income or net loss and owner withdrawals for the period are closed into the owner's capital account.

d

ensure that the company complies with state laws.

e

ensure that all permanent accounts are closed to zero at the end of each accounting period.

 

 

Question 19 (2 points)The record in which transactions are first recorded is the:

a

Account balance.

b

Cash account.

c

Trial balance.

d

Ledger.

e

Journal.

 

 

Question 20 (2 points)External users of accounting information include:

a

Creditors.

b

Shareholders.

c

Government regulators.

d

Customers.

e

All of these.

 

 

Question 21 (2 points)The most costly per occurrence type of workplace fraud is:

a

Corruption.

b

Coercion.

c

Fraudulent financial statements.

d

Asset misappropriation.

e

None of these.

 

 

Question 22 (2 points)Managers place a high priority on internal control systems because the systems assist managers in the:

a

Monitoring of employee performance.

b

All of these.

c

Planning of operations.

d

Prevention of avoidable losses.

e

Monitoring of company performance.

 

 

Question 23 (2 points)Accounts payable appear on which of the following statements?

a

Statement of owner's equity

b

All of the above.

c

Balance sheet.

d

Income statement.

e

a and b above.

 

 

Question 24 (2 points)The provisions of the Sarbanes Oxley Act applies

a

to small business.

b

to all US companies.

c

to private companies.

d

to public companies.

e

to multi-national companies doing business in the US.

 

 

Question 25 (2 points)Which of the following procedures would weaken control over cash receipts that arrive through the mail?

a

For safety, only one person should open the mail, and that person should immediately deposit the cash received in the bank.

b

After the mail is opened, a list (in triplicate) of the money received is prepared with a record of the sender's name, the amount, and an explanation of why the money is sent.

c

The cashier should not also be the record keeper who records the amounts received in the accounting records.

d

All of these are good internal control procedures over cash receipts that arrive through the mail.

e

The bank reconciliation is prepared by a person who does not handle cash or record cash receipts.

 

 

Question 26 (2 points)The board of directors report to

a

Shareholders.

b

SEC.

c

Management.

d

Lenders.

e

All of these.