QUESTION 1

Human _____ can occur from negligence, fatigue, misjudgment, or confusion.

QUESTION 2

Cash _____ are short-term, highly-liquid investment assets meeting two criteria: (1) readily convertible to a known cash amount and (2) sufficiently close to their due date so that their market value is not sensitive to interest rate changes.

QUESTION 3

Human _____ involves intent by people to defeat internal controls, such as management override, for personal gain.

QUESTION 4

The second major limitation on internal control is the _____ principle, which dictates that the costs of internal controls must not exceed their benefits.

QUESTION 5

Since the amount of Cash Short and Over is usually small, it is often reported on the income statement as part of miscellaneous expenses when it has a ____ balance.

QUESTION 6

After a voucher is approved, it is recorded in a journal called a voucher register.

QUESTION 7

Examples of cash equivalents are short-term _____ in assets such as U.S. Treasury bills and money market funds.

QUESTION 8

Projected cash receipts and cash disbursements are often summarized in a cash ____.

QUESTION 9

After a voucher is approved and the cashier sends the check to the vendor, the payment is recorded in a journal called a _____ register.

QUESTION 10

When the cash in a cash register does not equal the record of cash receipts, this difference is reported in the _____ (four words) account.

QUESTION 11

When companies fail, one of the most common causes is their inability to manage _____. Companies must plan both cash receipts and cash payments. The goals of cash management are twofold: (1) plan cash receipts to meet cash payments when due and (2) keep a minimum level of cash necessary to operate.

QUESTION 12

The Cash Short and Over account is reported on the _____ statement as either an expense or revenue.

QUESTION 13

Human fraud is driven by what's called the _____ threat of fraud.

QUESTION 14

An effective system of _____ controls protects cash assets and it should meet three basic guidelines: (1) Handling cash is separate from recordkeeping of cash, (2) Cash receipts are promptly deposited in a bank, and (3) Cash disbursements are made by check.

QUESTION 15

Section _____ of SOX requires that managers document and assess the effectiveness of all internal control processes that can impact financial reporting.

QUESTION 16

Cash and similar assets are called _____ assets because they can be readily used to settle such obligations.

QUESTION 17

A purchase _____ is a document that the purchasing department uses to place an order with a vendor (seller or supplier).

QUESTION 18

Auditors' work is overseen by the Public Company Accounting Oversight Board, known as _____.