4)Managers place a high priority on internal control systems because the systems assistmanagers in all of the following except:
A)Protecting assets.
B)Urging adherence to company policies.
C)Promoting efficient operations.
D)Ensuring reliable accounting.
E)Assuring that no loss will occur.
5)A properly designed internal control system:
A)Insures profitable operations.
B)Eliminates the need for an audit.
C)Is not necessary if the company uses a computerized system.
D)Requires the use of non-computerized systems.
E)Lowers the company's risk of loss.
6)A company's internal control system:
A)Eliminates the need for audits.
B)Eliminates the need for managers' certification of controls.
C)Monitors company and employee performance.
D)Eliminates human error.
E)Eliminates the company's risk of loss.
7)The impact of technology on internal controls includes:
A)Elimination of fraud.
B)Elimination of the need to bond employees.
C)Reduced processing errors.
D)Elimination of separation of duties.
E)Elimination of the need for regular audits.
8)Internal control systems are:
A)Required only if a company plans to engage in interstate commerce.
B)Developed by the Internal Revenue Service for all U.S. companies.
C)Required by Sarbanes-Oxley (SOX) to be documented and certified if the
company's stock is traded on an exchange.
D)Developed by the Securities and Exchange Commission for public companies.
E)Developed by the Small Business Administration for non-public companies.
9)Cash equivalents:
A)Include 6-month certificates of deposit.
B)Are short-term, highly liquid investment assets.
C)Include money orders.
D)Include checking accounts.
E)Are recorded in petty cash.
10)Cash equivalents meet all of the following criteria except:
A)Include short-term investments purchased within 3 months of their maturity
dates.
B)Are readily convertible to a known cash amount.
C)Have a market value that is not sensitive to interest rate changes.
D)Include short-term U.S. treasury bills.
E)Are more liquid than cash.
4)Managers place a high priority on internal control systems because the systems assistmanagers in all of the following except:
A)Protecting assets.
B)Urging adherence to company policies.
C)Promoting efficient operations.
D)Ensuring reliable accounting.
E)Assuring that no loss will occur.
5)A properly designed internal control system:
A)Insures profitable operations.
B)Eliminates the need for an audit.
C)Is not necessary if the company uses a computerized system.
D)Requires the use of non-computerized systems.
E)Lowers the company's risk of loss.
6)A company's internal control system:
A)Eliminates the need for audits.
B)Eliminates the need for managers' certification of controls.
C)Monitors company and employee performance.
D)Eliminates human error.
E)Eliminates the company's risk of loss.
7)The impact of technology on internal controls includes:
A)Elimination of fraud.
B)Elimination of the need to bond employees.
C)Reduced processing errors.
D)Elimination of separation of duties.
E)Elimination of the need for regular audits.
8)Internal control systems are:
A)Required only if a company plans to engage in interstate commerce.
B)Developed by the Internal Revenue Service for all U.S. companies.
C)Required by Sarbanes-Oxley (SOX) to be documented and certified if the
company's stock is traded on an exchange.
D)Developed by the Securities and Exchange Commission for public companies.
E)Developed by the Small Business Administration for non-public companies.
9)Cash equivalents:
A)Include 6-month certificates of deposit.
B)Are short-term, highly liquid investment assets.
C)Include money orders.
D)Include checking accounts.
E)Are recorded in petty cash.
10)Cash equivalents meet all of the following criteria except:
A)Include short-term investments purchased within 3 months of their maturity
dates.
B)Are readily convertible to a known cash amount.
C)Have a market value that is not sensitive to interest rate changes.
D)Include short-term U.S. treasury bills.
E)Are more liquid than cash.
