Which of the following is not one of the general ledger and reporting activities? Preparation of financial statements Updating the general ledger from the accounting subsystems and treasurer Preparation of managerial reports Producing subsidiary ledgers Posting adjusting entries to the general ledger Question 3 2 pts What is the easiest way to prevent the acceptance of unordered goods? Segregate the receiving and purchasing functions Order only from approved vendors Require receiving personnel to compare the goods to the packing slip before accepting any goods Require that a valid purchase order exists before goods can be accepted at the time of delivery Question 4 2 pts Which of the following statements about the internal environment is false? It is important to create an organizational culture that stresses a commitment to integrity and ethical values O A weak internal environment often results in breakdowns in risk management and control O Management's attitudes toward internal control and ethical behavior have little impact on employee beliefs or actions Question 8 2 pts The database constraint that says that foreign keys must be null or have a value corresponding to the value of a primary key in another table is formally called the entity integrity rule entity record rule referential integrity rule rule of keys Question 9 2 pts A firm's sales procedure involves preparing sales invoices based on shipping documents posting the sales amounts to accounts receivable records, and posting quantities billed to the inventory records. Due to control weaknesses in the procedure, certain goods that are shipped may not be reflected in the sales invoices. The exposure from this risk can result overstatements of revenues, receivables, and inventory understatement of revenues and overstatements of receivables and inventory understatements of revenues, receivables, and inventory understatements of revenues and receivables and over statement of inventory overstatements of revenues and receivables and understatement of inventory Question 10 2 pts A data entry clerk entered the incorrect part number for a blender. The part number was the part number for toasters. The best control to detect this error would include a(n) closed-loop verification validity check field check reasonableness check Question 14 2 pts At the time of the event, which of the following does not result in a journal entry and an update of information in the general ledger? Receiving cash from the customer Making a payment to the vendor Processing of the purchase order Approving payment for the vendor Question 15 2 pts A serious exposure for an organization that is connected with the revenue cycle is the loss of assets. What is the related threat and applicable control procudure associated with this exposure? O receiving unordered goods: compare to valid order shipping errors, data entry controls billing errors, reconciliation of shipping documents to sales order theft of inventory, documentation of all internal transfers of inventory Question 16 2 pts Which of the following is an applicable control procedure to reduce the threat that a company will have shipping errors? Credit approval by the credit manager Reconciliation of sales order with the picking list and packing slip Separation of shipping and billing function Sending monthly statements to the customer Reconciliation of the inventory subsidiary ledger with the general ledger