Q1The three drivers of fraud include:

A)Opportunity, Intrinsic and motivation

B)Opportunity, rationale and motivation

C)Opportunity, dishonesty and motivation

D)Rationale, separation of duties and dishonesty

E)Rationale, computer skills and motivation

Q2The amount of bad debt expense can be estimated by:

A)The percent of sales approach

B)The percent of accounts receivable approach

C)The direct write-off approach

D)The aging of accounts receivable approach

E)A, B and D

Q3When a company pays a share dividend:

A) Retained earnings are increased by the market value of the shares issued

B) Retained earnings are decreased by the market value of the shares issued

C) Retained earnings are increased by the average book value of the shares issued

D) Cash is decreased by the average book value of the shares issued

E) The share value is not adjusted, but the number of shares outstanding is increased

Q4On December 6, NetStick receives a $3,000, 90-day, 4% promissory note in return for services.On December 31, they will recognize the following interest income has been earned:

A) $0.33

B) $3.60

C) $8.22

D) $ 29.59

E) $120.00

Q5Employers should record payroll deductions as

A)Employee receivables

B)Current Liabilities

C)Payroll Tax expense

D)Wages Payable

E)Employee Wage Expense

Q6The following ratio provides information about a company's ability to meet short term cash requirements:

A)Debt to Equity ratio

B)Gross profit ratio

C)Current ratio

D)Return on equity

E)None of the above