Multiple Choice Questions:

1. Each of the following items may be classified as operating or financing activities under IFRS except

a) Dividends received.

b) Dividends paid.

c) Interest paid.

d) all of these answer choices may be classified as such.

2. The current assets of Orangatte Company are $227,500. The current liabilities are $130,000. The current ratio expressed as a proportion is

a) 175%.

b) 1.75:1.

c) 57:1.

d) $210,000 ÷ $120,000

3. All of the following requirements about internal controls were enacted under the Sarbanes Oxley Act of 2002 except:

a) Independent outside auditors must attest to the level of internal control.

b) Independent outside auditors must eliminate redundant internal control.

c) Companies must develop sound internal controls over financial reporting.

d) Companies must continually assess the functionality of internal controls.

4. Which of the following is not an internal control activity for cash?

a) The functions of record keeping and maintaining custody of cash should be combined.

b) All cash receipts should be recorded promptly.

c) Surprise audits of cash on hand should be made occasionally.

d) The number of persons who have access to cash should be limited.