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  3. Strayer ACC 556 Chapter 8 Quiz 

Contents

  • 1 Strayer ACC 556 Chapter 7 Quiz
    • 1.1 Question 1
    • 1.2 Question 2
    • 1.3 Question 3
    • 1.4 Question 4
    • 1.5 Question 5
    • 1.6 Question 6
    • 1.7 Question 7
    • 1.8 Question 8
    • 1.9 Question 9
    • 1.10 Question 10
  • 2 STATUS
    • 2.1 Question 11
    • 2.2 Question 12
    • 2.3 Question 13
    • 2.4 Question 14
    • 2.5 Question 15
    • 2.6 Question 16
    • 2.7 Question 17
    • 2.8 Question 18
    • 2.9 Question 19
    • 2.10 Question 20

Strayer ACC 556 Chapter 7 Quiz

Question 1

The most important element of the fraud triangle is rationalization.

Question 2

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Question 3

Under an effective system of internal control, errors occur only as a result of fraud or dishonesty.

Question 4

Control over cash disbursements is improved if major expenditures are paid by check.

Question 5

Cash equivalents are highly liquid investments that can be converted into a specific amount of cash.

Question 6

Which of the following is not one of the main factors that contribute to fraudulent activity?

Question 7

Under the concept of establishment of responsibility, how many people should have the ultimate responsibility?

Question 8

A consequence of the separation of duties is that

Question 9

In large companies, the independent internal verification procedure is often assigned to

Question 10

Sam’s Grocery Store has the following policy. ‘Only one cashier can have access to a cash drawer.’ Which internal control principle supports this policy?

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Question 11

Supervisors counting cash receipts daily is an example of

Question 12

Blank checks

Question 13

All of the following are true regarding bank statements except

Question 14

Which of the following would be added to the balance per bank on a bank reconciliation?

Question 15

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry:

Question 16

Clark Company developed the following reconciling information in preparing its September bank reconciliation:
Cash balance per bank, 9/30 $30,800
Note receivable collected by bank 16,800
Outstanding checks 25,200
Deposits in transit 12,600
Bank service charge 210
NSF check 3,360

Using the above information, determine the cash balance per books (before adjustments) for the Clark Company.

Question 17

Of the following employees, who should prepare the bank reconciliation?

Question 18

In the month of May, Lopat Company Inc. wrote checks in the amount of $55,500. In June, checks in the amount of $75,948 were written. In May, $50,808 of these checks were presented to the bank for payment and $65,298 in June. What is the amount of outstanding checks at the end of May?

Question 19

All of the following are true regarding the management and monitoring of cash except

Question 20

Match the items below by entering the appropriate code letter in the space provided.

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