Multiple Choice Questions:
1. Which of the following functions is not compatible with managing the accounts receivable ledger?
a. Opening the mail.
b. Approving the write-off of bad debt.
c. Depositing customer payments into the company bank account.
d. All of the above.
e. Only a and c.

2. The primary control in the purchasing side of the finance cycle is
a. Ensuring that accounting maintains control of company checks.
b. Having the chief accountant review and approve all payments.
c. Having the treasury function make payments based on documentation from other departments.
d. Requiring at least one corporate executive to review payments before they are made.

3. Lockboxes are used for
a. Storing petty cash.
b. Storing the combined receipts of multiple cash registers.
c. Storing the payment collection.
d. None of the above.

4. For ideal control over cash registers, there should be
a. Two employees assigned to each register.
b. One employee assigned to each register.
c. At least one employee assigned to each register.
d. None of the above.

5. In the classical approach to systems development, the developer
a. Produces a custom blueprint for the desired system
b. Uses an industry-standard system blueprint.
c. Starts with an industry-standard system blueprint and then makes adaptations.
d. All of the above.

6. The turnkey approach to systems development is
a. More expensive that the classical approach.
b. Less expensive than the classical approach.
c. Costs about the same as the classical approach.
d. More or less expensive that the classical approach, depending on the systems life cycle.

  • CreatedMarch 20, 2015
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