Question
QUESTION 1 Sarbanes-Oxley was passed in response to which of the following? A. The stock market crash of 2002 B. The savings and loan bailout
QUESTION 1
Sarbanes-Oxley was passed in response to which of the following?
A. | The stock market crash of 2002 |
B. | The savings and loan bailout |
C. | The accounting scandals of WorldCom and Enron |
D. | The mounting government deficit |
QUESTION 2
In the following situation, which internal control procedure needs strengthening? Hofstra Services hired a new accounting manager. He signed a contract for a new accounting information system, but his position did not specify whether he was authorized to do so or not.
A. | Assignment of responsibilities |
B. | Competent, reliable, and ethical personnel |
C. | Separation of duties |
D. | Documents |
QUESTION 3
Which of the following is NOT one of the benefits provided by internal control?
A. | To reduce waste |
B. | To insure that better business decisions are made |
C. | To offer protection against theft |
D. | To reduce inefficiency |
QUESTION 4
Which of the following items found on a bank reconciliation does NOT require an adjusting entry?
A. | Interest earned |
B. | A bank service charge |
C. | A note collected by the bank |
D. | Deposits in transit |
QUESTION 5
The following information is available for Matt's Unlimited Company for the current month. What is the adjusted book balance on the bank reconciliation? Book balance end of the month $5,575 Outstanding checks $584 Deposits in transit $ 2,500 Service charges $75 Interest revenue$25
A. | $7,466 |
B. | $5,500 |
C. | $5,550 |
D. | $5,525 |
QUESTION 6
Reducing expense to increase operating profit is representative of:
A. | safeguarding assets. |
B. | following company policies. |
C. | promoting operational efficiency. |
D. | ensuring accurate, reliable accounting records. |
QUESTION 7
Which of the following items will NOT appear on the book side of the reconciliation?
A. | The bank collected a note receivable of $1,000 for the business. |
B. | A nonsufficient funds check of $75 was returned to the bank and deducted from the bank balance. |
C. | A deposit was in transit and not yet deposited in the bank. |
D. | The bank charged a service fee of $20 on the bank statement. |
QUESTION 8
If an accountant takes an action that is deliberately designed to improve the company's financial results, it would be considered unethical if:
A. | it deliberately misrepresents facts. |
B. | the action was taken specifically for the purpose of showing higher income. |
C. | the action will require a special journal entry. |
D. | the action is not in the best interests of the business owners. |
QUESTION 9
Check Number 367 for $33.52 was incorrectly entered as $33.25. Which adjustment needs to be made?
A. | Decrease the book balance. |
B. | Decrease the bank statement balance. |
C. | Increase the book balance. |
D. | Increase the bank statement balance. |
QUESTION 10
A petty cash fund was established with a $400 balance. It currently has cash of $10 and petty cash tickets as shown below. Travel expense $120 Office supplies $200 Equipment rental expense $70 The journal entry to replenish the account would be which of the following:
A. | Debit various expenses $390, credit Cash $390 |
B. | Debit various expenses $390, credit Petty cash fund $390 |
C. | Debit Cash $10, credit various expenses $10 |
D. | Credit Petty cash fund $390, debit Cash $390 |
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