1. Which of these is NOT part of the fraud triangle?

   1. Rationalization
   2. Means
   3. Financial Pressure
   4. Opportunity

2. According to the Sarbanes-Oxley Act, who isrequired to maintain an adequate system of internal control?

   1. Publicly traded US companies
   2. Small and medium sized businesses
   3. International companies not publicly traded
   4. All of the above

3. Which of these is NOT an example of a physical internal control?

   1. safety deposit box
   2. Alarms
   3. monitors
   4. Shared cash register use with no passwords

4. What is the formula for calculating average accounts receivable?

   1. (Beginning accounts receivable + Ending accounts receivable)/2
   2. Ending accounts receivable/4
   3. (Beginning accounts receivable + Beginning accounts payable)/2
   4. Average inventory turnover

5. Which of these is NOT a way to show time in the interest formula?

   1. # of years
   2. # of months/12
   3. # of months/36
   4. # of days/360

6. A _______ is a written promise to pay a debt on demand or at a specified period of time.

   1. Inventory invoice
   2. Promissory note
   3. Long-term liability
   4. Amortization account

7. All of the following are part of bank reconciliation EXCEPT:

   1. Deposits in transit
   2. Outstanding checks
   3. NSF checks
   4. Revenue fee calculations

8. Each of the following are considered Plant Assets except:

   1. Land
   2. Equipment
   3. Buildings
   4. Inventory

9. The value of Plant Assets includes:

   1. Only the cost of the asset at purchase
   2. Cost of the asset plus market value
   3. All costs associated with getting it ready for its intended use
   4. Only physical/tangible costs

10. A current liability is a debt a company expects to pay in how long?

    1. months
    2. years
    3. year or less
    4. years

11. Determining payroll requires computing which of the following?

    1. Gross Pay
    2. Net Pay
    3. Deductions
    4. All of the above

12. When it is determined that a receivable account wont be paid, it is recorded as:

    1. Inventory
    2. Bad debt expense
    3. Cost of goods sold
    4. Accounts payable