Question $1(4$ points$)$

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There are three internal control objectives and they are to safeguard the company's reputation, ensure accurate financial reports, and ensure compliance with applicable laws.

Question $1$ options:

TrueFalse

Question $2(4$ points$)$

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The Sarbanes$-$Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures.

Question $2$ options:

TrueFalse

Question $3(4$ points$)$

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Businesses that have several bank accounts, petty cash, and cash on hand would maintain a separate ledger account for each type of cash.

Question $3$ options:

TrueFalse

Question $4(4$ points$)$

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A voucher system is an example of an internal control procedure over cash payments.

Question $4$ options:

TrueFalse

Question $5(4$ points$)$

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In preparing a bank reconciliation, the amount of a canceled check omitted from the journal is added to the balance per company's records.

Question $5$ options:

TrueFalse

Question $6(4$ points$)$

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A check for $$342$ was erroneously charged by the bank as $$432.$ In order for the bank reconciliation to balance, you must add $$90$ to the bank statement balance.

Question $6$ options:

TrueFalse

Question $7(4$ points$)$

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A petty cash fund is used to pay relatively large amounts.

Question $7$ options:

TrueFalse

Question $8(4$ points$)$

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The objectives of internal control are to

Question $8$ options:

control the internal organization of the Accounting Department personnel and equipment

provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with

prevent fraud and promote the social interest of the company

provide control over "internal$-$use only" reports and employee internal conduct

Question $9(4$ points$)$

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Which of the following reflects a weak internal control system?

Question $9$ options:

All employees are well supervised.

A single employee is responsible for comparing a receiving report to an invoice.

All employees must take their vacations.

A single employee is responsible for collecting and recording cash.

Question $10(4$ points$)$

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Which of the following should not be considered cash by an accountant?

Question $10$ options:

money orders

bank checking accounts

postage stamps

travelers' checks

Question $11(4$ points$)$

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Other receivables include nontrade receivables such as loans to company officers.

Question $11$ options:

TrueFalse

Question $12(4$ points$)$

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Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.

Question $12$ options:

TrueFalse

Question $13(4$ points$)$

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Generally accepted accounting principles do not normally allow the use of the direct write$-$off method of accounting for uncollectible accounts.

Question $13$ options:

TrueFalse

Question $14(4$ points$)$

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The direct write$-$off method records bad debt expense in the year the specific account receivable is determined to be uncollectible.

Question $14$ options:

TrueFalse

Question $15(4$ points$)$

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At the end of a period $($before adjustment$),$ Allowance for Doubtful Accounts has a credit balance of $$5,000.$ The Accounts Receivable balance is analyzed by aging the accounts and the amount estimated to be uncollectible is $$50,000.$ The amount to be recorded in the adjusting entry for the bad debt expense is $$45,000.$

Question $15$ options:

TrueFalse