ACG 2021- Final Exam Review

Under which of the following do computer programs that limit unauthorized access to certain files fall?

Which of the following is an effective internal control over cash disbursements?

When preparing a bank reconciliation, how are deposits in transit handled?

Handy Inc. permits only designated personnel such as cashiers to handle cash receipts. What principle is being applied?

During a given year, several parties examine the financial records of ABC Company. These parties include internal auditors, independent auditors, and Internal Revenue Service agents. Which of these parties are considered employees of ABC Company?

Which of the following will not require an adjusting entry as a result of a bank reconciliation?

Which of the following is not a reason why an organization establishes a system for internal control?

Which one of the following is not a physical control?

Which of the following is not a principle of internal control?

For which item below might a bank issue a credit memorandum to a depositor's account?

Which of the following was not a result of the Sarbanes-Oxley Act?

Which of the following is not an element of the fraud triangle?

Which one of the following is a primary component of an internal control system?

Which one of the statements below is true?

Which of the following is an element of the fraud triangle?

Which one of the following control activities is relevant when a company uses a computerized (rather than manual) accounting system?

Which one of the following is not a primary component of an internal control system?

Which of the explicitly requires that all publicly traded companies must maintain adequate internal controls?

Which of the following is not an effective internal control over cash disbursements?

Which of the following statements is false with regards to record-keeping for bank reconciliations?

For which of the following might a bank issue a debit memorandum to a depositor's account?

An office supply store has a cashier who is also the accounts receivable clerk for the company. Which internal control principles is violated

Which one of the following is not one of the principles of internal control?

Which of the following statements is correct regarding internal controls?

Which of these statements about national credit card (e.g., Visa) sales is incorrect?

Factoring is the process of

What type of receivables result from sales transactions?

When an uncollectible account is recovered after it has been written off, two journal entries are recorded. Which of the following accounts will be debited in these two journal entries?

Which one of the following is not one of the five basic issues in accounting for notes receivable?

Which of the following is the correct sequence to report receivables on the balance sheet?

A promissory note will likely be used in all of the following settings except

What is often the most critical part of managing receivables?

If a company is concerned about lending money to a risky customer, which one of the following would it not want to do?

Which one of the following statements is true?

At what value are accounts receivable reported on the balance sheet?

Which of the following are used to compute cash realizable value?

Which one of the following is not a method used by companies to accelerate cash receipts?

At what amount is a short-term note receivable recorded on the issue date?

When a note receivable is paid on time and no interest has been previously accrued, what will the journal entry to record the transaction contain?

When is a receivable recorded by a merchandiser?

The ending balance of the Retained Earnings account appears on

Which forms of business organization have owners called stockholders?

What type of account or account classification is Cost of Goods Sold?

A company can change to a new method of accounting if management can justify that the new method results in

Which financial statement is used by most corporations instead of the retained earnings statement?

What is the primary accounting standard-setting body in the United States?

Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments?

Which of the following is not an accounting assumption?

Dividing net income minus preferred stock dividends by the average of common shares outstanding produces the following:

A company using the same accounting principles and the same accounting methods from one year to the next year is an application or example of

How does a company compute its free cash flow?

Which of these measures is an evaluation of a company's ability to pay current liabilities?

working capital formula

Which of the following is considered property, plant, and equipment on a classified balance sheet?

Which of the following is not a fundamental quality of useful accounting information?

earnings per share

In a classified balance sheet, how and in what order are assets usually classified?

Which of the following is an indicator of profitability?

Which pair of accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?

If an previously unrecorded expense is paid with cash then recording the transaction will

Transactions are initially recorded in chronological order in a __________ before they are transferred to the accounts.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

When a trial balance balances, it is an indication that

If a company receives cash from an owner in exchange for shares of the company's common stock, then

Debits increase

Which of the following is not reported as a financing activity in the statement of cash flows?

What journal entry is recorded as a result of issuing stock to investors for cash?

An account is a part of a company's financial information system and is described by all except which one of the following?

Paying for a one-year insurance policy that will expire next year

ending retained earnings

If a company buys supplies on account, then

If a company borrows money from a bank, then

If a company records wages when it pays them, then recording the payment of wages

Which of the following events is not recorded in a company's accounting records?

posting transfers

What does a general ledger of a company contain?

Which of the following is evidence that a transaction has occurred that needs to be recording in a company's accounting records?

If cash is received in advance from a customer

The effects of a receipt of cash in advance from a customer on the basic accounting equation are to

Accounts with normal credit balances include

Although steps are missing, which of the following lists steps of the accounting cycle in their correct order?

Financial statements can be prepared directly from the

Payments from customers received before performing services for the customers are recorded as

Which of the following is not a typical example of a prepaid expense?

Companies prepare various types of trial balances. Which trial balance lists all of a company's permanent and temporary accounts?

Which one of these statements about the accrual-basis of accounting is false?

The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the

At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true?

If the year-end adjusting entry to record salaries owed to employees were omitted then

Which of the following correctly describes the closing process?

A certain company debited prepaid insurance when it paid for a one-year insurance policy. If the company does not record any year-end adjusting entries then

Adjusting entries are made to ensure that

Which inventory system will likely be used by a company with merchandise that has a high per unit value?

A company's gross profit rate is lower this year compared to the prior year. Which of the following would not be a possible cause for this decline in the gross profit rate?

What type of account is Sales Returns and Allowances?

In a periodic inventory system, when is the cost of the merchandise sold determined?

Cost of goods sold

net sales

gross profit

gross profit ratio

profit margin

Inventory costing methods place primary reliance on assumptions about the flow of

When terms are FOB shipping point

Reporting which one of the following allows analysts to make adjustments to compare companies using different cost flow methods?

Which of the following should be included in the physical inventory of a company?

When is a physical inventory usually taken?

Which of these transactions would cause the days in inventory ratio to increase the most?

Which of the following is an inventory account?

What is the underlying rationale for the lower-of-cost-or-market rule?

factoring is a process of

Offering discounts for early payment is a method used by companies to

Which of the following pairs of accounts increase on opposite sides?

Which method will lead to the lowest net income when prices are rising? (LIFO or FIFO)