ACCT212 Financial Accounting
WEEK 3 CHECKPOINT
Question 1
(TCO 5) The three main components of the fraud triangle are
rationalization,
opportunity, and greed.
opportunity, motive,
and lack of ethics.
motive, opportunity,
and rationalization.
None of the above
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) The primary way that fraud is prevented and detected
is through a proper system of
checks and balances.
management
directives.
internal control.
internal and external
audits.
Question 4
(TCO 5) The “tone at the top”
is a component of
the control procedures.
starts with low
level employees.
means that owners
and top managers must behave honorably to set a good example for employees.
is set by the PCAOB.
Question 5
(TCO 5) The information system component of internal control
ensures that every
system that processes accounting data should have the ability to capture
transactions as they occur.
monitors controls.
offers hints of
where fraud or errors could occur.
ensures that the IT
department has adequate control procedures in place to ensure that no one can
hack into the company’s database.
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) When preparing a bank reconciliation, which of the
following items should be added to the book balance?
EFT receipts
Deposits in transit
Collection items
Both EFT receipts
and collection items
Question 8
(TCO 5) When a company receives cash by mail
all incoming mail
containing cash receipts should be opened by the accounting department.
the mailroom sends
all customer checks to the internal audit department.
the remittance
advice goes to the accounting department for preparation of the journal
entries.
the bank deposit is
prepared by the mail room.
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) Which of the following is a true statement about
sales?
Net revenue is gross
revenue plus sales discounts less sales returns and allowances.
Sales discounts are
offered to customers in order to speed up cash flow.
Sales returns and
allowances increase a company’s profit.
Retailers do not
generally record sales returns and allowances in a separate account.