1) Which of these is not a primary goal of internal controls a) Safeguarding assets b) Promoting operational efficiency c) Monitoring risk assessment d) Ensuring accurate, reliable records 2) The Sarbanes-Oxley Act: a) Requires violators of the Act to serve 5-10 years in prison for securities fraud and/or falsifying financial statements b) Requires the FASB to oversee auditors of public companies c) Requires a firm's internal control environment to reflect the "tone at the top" d) Prohibits auditors of public firms from performing certain consulting services for their audit clients 3) Natalie, who receives cash from customers, conspires with Joe, who posts the collections to customer Accounts Receivable, to falsify records so they can take the cash for themselves. This is an example of a) Separation of duties b) Assignment of responsibilities c) Collusion d) Cost/benefit limitations 4) The petty cash fund had an initial balance of $250. It currently has $30 and petty cash tickets totaling $170 for office supplies. What is the entry to replenish the fund? 5) A firm's Cash account shows a $1,850 ending balance. The bank statement shows a $52 service charge and an NSF check for $280. Other records indicate that a $240 deposit is in transit, and $535 of outstanding checks. What is the firm's adjusted cash balance? 6) Which of these bank reconciliation items is correctly described? a) Deposits in transit increase the book side of the reconciliation b) NSF checks increase the book side of the reconciliation c) Outstanding checks decrease the bank side of the reconciliation d) Service charges decrease the bank side of the reconciliation 7) A firm provided the following year-end data: Cash $15,000 Cash equivalents 3,000 Total current assets 40,000 Total current liabilities 30,000 What is the firm's cash ratio? Next