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1) 2) 7) 8) 9) Which statement provides information about the cash receipts and payments of a business? a) Statement of Earnings b) Statement of Retained Earnings c) Balance Sheet d) Statement of Cash Flows Which statement summarizes the profit-generating activities for a particular reporting period? a) Statement of Earnings b) Statement of Retained Earnings 0) Balance Sheet d) Statement of Cash Flows Interest Income and Dividend Income is part of Other Income. a) TRUE b) FALSE A company's earnings quality is affected by its choice of accounting methods. a) TRUE b) FALSE Pro-forma earnings are a) actual earnings b) required to be reported quarterly c) issued at management's discretion d) not an accounting item The percentage of a company's assets owned by creditors is shown by the a) Current ratio b) Debt-to-Equity ratio c) Return on Total Assets d) Return on Sales A single-step income statement is preferred by investors and creditors. a) TRUE b) FALSE Which of the following is not part of the fraud triangle? a) prevention b) opportunity c) rationalization d) pressure Which of the following in not an example of an error? a) expensing to a wrong account b) transposing numbers c) reporting assets at fair market value instead of historical cost d) overriding internal controls 10) Who' IS usually responsible for the misappropriation of assets? a) employees b) management 0) customers d) all of the above 11) Which of the following affect people and can increase the incidence of errors? a) demands b) conflicts c) time constraints d) all of the above 9) none of the above 12) Journal entries proposed by managers should be approved by the CFO or other executive. a) TRUE b) FALSE 13) Internal auditors are a part of the accounting process. a) TRUE b) FALSE 14) Management is usually the one overriding internal controls. a) TRUE b) FALSE 15) Risk that addresses obtaining revenues and assets by fraudulent means. a) operational b) compliance c) situational d) moral 16) The methods and strategies used to stop those not deterred from succeeding' In committing fraud. a) fraud deterrence b) fraud prevention 0) fraud detection d) management 17) What is the acronym for the elements of fraud? a) FRAUD b) THEFT c) MIRD d) DDP 18) Fraud' is the intentionally deceptive acts that result' In another party losing something. a) TRUE . b) FALSE 19) False statements are unknowingly making fraudulent statements. a) TRUE b) FALSE