Chapter 7 Quiz example #7116

Which of the following is not one of the main factors that contribute to fraudulent activity? A) Financial pressure B) Opportunity C) Rationalization D) Incompatible duties

Each of the following is a feature of internal control expect A) recording of all transactions B) an extensive marketing plan C) bonding of employees D) separation of duties

The reconciliation of the cash register tape with the cash in the register is an example of A) independent internal control B) segregation of duties C) other controls D) establishment of responsibility

Deposits in transit A) have been recorded by the bank but not yet by the company B) are customers' checks that have not yet been received by the company C) have been recorded on the company's books but not yet by the bank D) have not been recorded by the bank or the company

In preparing a bank reconciliation, outstanding checks are A) added to the balance per books B) deducted from the balance per bank C) deducted from the balance per books D) added to the balance per bank

If a check correctly written and paid by the bank for $628 is incorrectly recorded on the company's books for $682, the appropriate treatment on the bank reconciliation would be to A) deduct $628 from the book's balance B) add $54 to the book's balance C) subtract $54 from the book's balance D) deduct $54 from the bank's balance

Indicate whether the listed below strengthens (S) or weakens (W) a company's system of internal control. A) cashiers are not bonded B) all payments are made with checks C) discouraging employees from taking paid vacations D) two people handle cash sales from the same cash register drawer E) using renumbered sales tickets