| A. Disclaimer | | B. Unqualified | | C. Adverse | | D. Qualified | | 12. Olympic Enterprises has the following inventory data: | Date | | Quantity | Unit Cost | | June 1 | Beginning inventory | 5 | $52 | | June 4 | Purchase | 10 | $55 | | June 7 | Sale | 12 | | | June 11 | Purchase | 9 | $58 | | June 14 | Sale | 8 | | Assuming FIFO, what is the cost of goods sold for June 14? | | A. $455 | | B. $440 | | C. $456 | | D. $464 | | 13. An employee believes that getting away with fraud without being detected is likely. This best relates to which element of the fraud triangle? | | A. Realization | | B. Perceived pressure | | C. Perceived opportunity | | D. Rationalization | | 14. If an employee overbills a company for travel, this would be considered a/an | | A. expense scheme. | | B. disbursement scheme. | | C. check tampering scheme. | | D. cash register scheme | 15. If net sales decrease and cost of goods sold increases, the gross profit percentage | | A. increases. | | B. will change based upon the change in total assets. | | C. decreases. | | D. remains the same. | | 16. Which of the following is not part of the control environment? | | A. Having integrity and ethical values | | B. Assessing chances of fraud | | C. Having a leadership philosophy | D. Having competent workers | 17. ABC Corporation pays an invoice for $350 in time to receive a 3% discount. The journal entry for the payment of this invoice is debit Accounts Payable | | A. $340 and credit Cash $340. | | B. $340, debit Inventory $10, and credit Cash for $350. | | C. $350 and credit Cash $350. | | D. $350, credit Inventory $10.50, and credit Cash for $339.50. | | | | 18. As it relates to accounting fraud, which of the following best describes perceived pressure? | | A. An employee's justification of his or her actions | | B. Intentional misrepresentation of financial statements | | C. The opportunity to commit and conceal fraud | | D. A need to obtain cash or other assets | | | | | 19. A company has net sales of $126,000, cost of goods sold of $72,000, operating expenses of $38,000, and other expenses of $3,000. The company's net income is | | A. $54,000. | | B. $16,000. | | C. $13,000. | | D. $51,000. | | | | | 20. A new car lot would probably cost its inventory using the _______ method of inventory costing. | | A. LIFO | | B. specific-identification | | C. moving average | | D. FIFO | | | | | | |
