ACG 2021 Final Exam Review Questions and Solutions
9 views 0 purchase
Course
ACG 2021
Institution
ACG 2021
Under which of the following do computer programs that limit unauthorized access to certain files fall? physical controls
Which of the following is an effective internal control over cash disbursements? -The use of pre-numbered checks -The storage of blank checks in a secure place -The separation ...
ACG 2021 Final Exam Review Questions
and Solutions
Under which of the following do computer programs that limit unauthorized access to
certain files fall? ✅physical controls
Which of the following is an effective internal control over cash disbursements? ✅-The
use of pre-numbered checks
-The storage of blank checks in a secure place
-The separation of authorization of checks and the actual writing of the checks
When preparing a bank reconciliation, how are deposits in transit handled? ✅added to
the bank balance
Handy Inc. permits only designated personnel such as cashiers to handle cash receipts.
What principle is being applied? ✅establishment of responsibility
During a given year, several parties examine the financial records of ABC Company.
These parties include internal auditors, independent auditors, and Internal Revenue
Service agents. Which of these parties are considered employees of ABC Company?
✅internal auditors
Which of the following will not require an adjusting entry as a result of a bank
reconciliation? ✅deposits in transit
Which of the following is not a reason why an organization establishes a system for
internal control? ✅to eliminate the need for an independent auditor
Which one of the following is not a physical control? ✅independent bank reconciliation
Which of the following is not a principle of internal control? ✅collusion between
employees
For which item below might a bank issue a credit memorandum to a depositor's
account? ✅interest earned
Which of the following was not a result of the Sarbanes-Oxley Act? ✅Companies must
file financial statements with the Internal Revenue Service.
Which of the following is not an element of the fraud triangle? ✅collusion
, Which one of the following is a primary component of an internal control system?
✅monitoring
Which one of the statements below is true? ✅The deposits in transit are added to the
balance per the bank statement, and outstanding checks are deducted from the balance
per the bank statement during the bank reconciliation process.
Which of the following is an element of the fraud triangle? ✅financial pressure
Which one of the following control activities is relevant when a company uses a
computerized (rather than manual) accounting system? ✅-Establishment of
responsibility
-Segregation of duties
-Independent internal verification
Which one of the following is not a primary component of an internal control system?
✅rationalization
Which of the explicitly requires that all publicly traded companies must maintain
adequate internal controls? ✅the Sarbanes-Oxley Act
Which of the following is not an effective internal control over cash disbursements?
✅Requiring personnel who authorize cash disbursements to work continuously without
vacations
Which of the following statements is false with regards to record-keeping for bank
reconciliations? ✅Deposits in transit do require a journal-entry once the bank
reconciliation is completed.
For which of the following might a bank issue a debit memorandum to a depositor's
account? ✅-NSF checks
-monthly service charge
An office supply store has a cashier who is also the accounts receivable clerk for the
company. Which internal control principles is violated ✅segregation of duties
Which one of the following is not one of the principles of internal control? ✅financial
performance measures
Which of the following statements is correct regarding internal controls? ✅The person
who has custody of assets should not perform the record keeping for the assets
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller twishfrancis. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
