Question 1.1. Sarbanes-Oxley:

Question 1.1.  Sarbanes-Oxley: 

        applies to all businesses.

        has a purpose of insuring all companies report only accurate financial statements.

        was enacted in 2000.

        only applies to businesses whose stock is traded on public exchanges

Question 2.2. The objectives of internal control include all of the following EXCEPT: 

        to give accountants more "busy-work."

        to provide reasonable assurance that business information is accurate

        to provide reasonable assurance that assets are safeguarded.

        to provide reasonable assurance that employees comply with laws.

Question 3.3. Which of the following is NOT one of the five elements of internal control? 

        Physical safeguarding

        The control environment

        Control procedures

        Risk assessment

Question 4.4. Which of the following would NOT be considered a risk factor related to employee fraud? 

        Lack of bi-monthly paychecks.

        Lack of proper management oversight

        Lack of proper documentation for transactions

        Lack of proper segregation of duties

Question 5.5. Which of the following are controls over cash receipts and/or payments?

Remittance       A Voucher System

    Advices  

        Yes,                      Yes

        Yes,                 No

        No,                 Yes

        No,                    No

Question 6.6. The depositor's checking account balance in the bank's records is a(n) ________.         

       Liability

        Asset

        Revenue

        Expense

Question 7.7. In preparing a bank reconciliation, a service charge would be: 

        added to the cash balance according to the bank statement

        deducted from the cash balance according to the bank statement

        added to the cash balance according to the depositor's records

        deducted from the cash balance according to the depositor's records

Question 8.8. The bank statement reports an ending balance of $5,650 after deducting $120 in service charges and an addition of $2,400 for a note collected by the bank on the company's behalf. The depositor reports an ending balance of $720 and determines that deposits in transit equal $2,100 and outstanding checks equal $4,750. What is the adjusted balance for the bank? 

        $900

        $3,000      

        $8,300

        None of the above

Question 9.9. Replenishing the petty cash fund will include an adjustment to __________. 

        Expense accounts

        Petty cash

        Capital stock

        Accounts payable

Question 10.10. If a company is required to maintain a minimum cash balance in their account, this balance is called a: 

        Minimum balance

        Required balance

        Compensating balance

        True balance