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Devry ACCT 212 Week 3 Quiz

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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.

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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.