Which of the following would generally not be a component of the audit of the acquisition and payment cycle?

(3pts)

Question 20 - Which of the following would generally not be a component of the audit of the acquisition and payment cycle?

	reperformance of recorded depreciation expense
	determining the adequacy of the funds available for capital expenditures
	tracing disposals of long-lived assets to the fixed asset master file
	adequacy of controls over acquisitions of long-lived assets

A set of records for each piece of equipment that includes descriptive information, date of acquisition, original cost, current year depreciation, and accumulated depreciation is the

(3pts)

Question 21 - A set of records for each piece of equipment that includes descriptive information, date of acquisition, original cost, current year depreciation, and accumulated depreciation is the

	depreciation schedule.
	fixed asset master file.
	file of purchase requisitions.
	acquisitions schedule

Question 22 - Cash is the only account included in every cycle except inventory and warehousing.True False

Because cash is the most desirable asset for people to steal, it has a higher

(3pts)

Question 23 - Because cash is the most desirable asset for people to steal, it has a higher

	liquidity risk.
	detection risk.
	control risk.
	inherent risk.

Question 24 - Companies may purchase marketable securities as a way to temporarily invest excess cash.True False

An imprest petty cash fund would least likely be used to pay for which of the following items?

(3pts)

Question 25 - An imprest petty cash fund would least likely be used to pay for which of the following items?

	stamps for small mailings
	minor office supplies
	small contributions to a local charity
	monthly interest expense

Question 26 - Examples of cash equivalents include time deposits, certificates of deposit, and marketable securities.True/False

Question 27 - Branch bank accounts are useful for building banking relations in local communities.True False