12. Which of the following best pairs a financing process risk with an internal control that will address the risk?

a. Sending a dividend check to the wrong shareholder, electronic database b. Falling stock prices due to profit restatements, independent audits c. Failure to receive IPO approval from the SEC, separation of duties d. Inability to pay dividends because of a cash shortage, corporate line of credit

13. The sales/collection process is important in organizations because:

a. Without it, an organization may soon cease to exist. b. It is the only method an organization has for generating cash flow. c. Both without it, an organization may soon cease to exist and it is the only method an organization has for generating cash flow. d. Neither without it, an organization may soon cease to exist nor it is the only method an organization has for generating cash flow.

14. The acquisition/payment process:

a. Helps an organization create value for its stakeholders. b. Can only be applied if an organization sells a product. c. Both helps an organization create value for its stakeholders and can only be applied if an organization sells a product. d. Neither helps an organization create value for its stakeholders nor can only be applied if an organization sells a product.

15. Which of the following transactions would be appropriately processed in the sales/collection process?

a. THT Corporation purchased merchandise on account from HRS Corporation. b. HRS Corporation received cash from THT Corporation for a previous sale on account. c. Both THT Corporation purchased merchandise on account from HRS Corporation and HRS Corporation received cash from THT Corporation for a previous sale on account. d. Neither THT Corporation purchased merchandise on account from HRS Corporation nor HRS Corporation received cash from THT Corporation for a previous sale on account.

16. CGI Corporation uses a process costing system to manufacture its product. As part of the processing activities in its human resource process, which of the following would CGI use to record payroll costs of its factory workers?

a. Debit work in process, credit wages payable b. Debit wages expense, credit wages payable c. Debit wages payable, credit cash d.Debit wages expense, credit retained earnings