Devry ACCT 212 Week 3 Quiz
Question 1. (TCO 5) The two most common types of fraud impacting financial statements are
- fraudulent financial reporting and e-commerce fraud.
- misappropriation of assets and embezzlement.
- fraudulent financial reporting and misappropriation of assets.
- cooking the books and fraudulent financial reporting.
Question 2. (TCO 5) Fraud is the ultimate unethical act in business because
- the perpetrators usually do so for their own short-term economic gain at the expense of others.
- fraud is illegal.
- fraud violates the rights of many for the temporary betterment of a few.
- All of the above
Question 3. (TCO 5) Internal controls are designed to accomplish five objectives: comply with legal requirements, promote operational efficiency, safeguard assets, encourage employees to follow company policy, and
- prevent embezzlement.
- prevent collusion.
- ensure accurate, reliable external audits.
- ensure accurate, reliable accounting records.
Question 4. (TCO 5) A fidelity bond is a(n)
- employment contract for a specified period of time.
- insurance policy that reimburses a company for employee theft.
- contract prohibiting former employees from working for a competitor.
- promise by a company to safeguard customers’ personal information.
Question 5. (TCO 5) Hints of where fraud, mistakes, or financial harm can occur in a company is called
- the control environment.
- risk assessment.
- control procedures.
- the tone at the top.
Question 6. (TCO 5) Creating bogus websites for the purpose of stealing unauthorized data is a(n)
- encryption device.
- phishing expedition.
- computer virus.
- Trojan horse.
Question 7. (TCO 5) Deposits that have been recorded on the book, but have not yet been recorded by the bank are
- nonsufficient funds deposits.
- outstanding deposits.
- deposits in transit.
- electronic funds deposits.
Question 8. (TCO 5) Cash requires specific internal controls because
- cash is one of the most difficult assets to steal.
- cash is difficult to convert to other forms of wealth.
- all transactions ultimately affect cash.
- cash is difficult to conceal.
Question 9. (TCO 5) Another name for short-term investments is
- equity investments.
- marketable securities.
- market investments.
- available-for-sale securities.
Question 10. (TCO 5) A business offers credit terms of 1/15, n/30. These terms indicate that
- the total amount of the invoice must be paid within 15 days.
- a discount of 1% can be taken if the invoice is paid within 15 days.
- the buyer can take a 1% discount if the bill is paid within 15 or 30 days.
- no discount is offered for early payment.
