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What control function is performed by auditors?

Select one:

a. Guarantee that company employees have

behaved ethically.

b. Assurance that all transactions are accounted for correctly.

c. Objective opinion on the fair presentation of the financial statements.

d. Communication of the results of the audit to regulatory agencies.

The bank account serves as a control device over:

Select one:

a. Cash receipts.

b. Cash payments.

c. Both of the above.

d. None of the above.

Which of the following is an objective of internal control:

Select one:

a. Safeguarding assets.

b. Maintaining reliable control systems.

c. Preventing and detecting fraud and errors.

d. Optimizing the use of resources.

e. All of the above are objectives of internal control.

Which of the following items appear on the Bank side of a bank reconciliation:

Select one:

a. Book error.

b. NSF cheque.

c. Outstanding cheque.

d. Interest revenue earned on bank balance.

The internal control feature that is specific to petty cash is:

Select one:

a. Separation of duties.

b. The imprest system.

c. Proper authorization.

d. Assignment of responsibilities.

The function of the credit department is to:

Select one:

a. Report bad credit risks to other companies.

b. Evaluate customers who apply for credit.

c. Write off uncollectible accounts receivable.

d. Collect accounts receivable from customers.

The credit balance in Allowance for Doubtful Accounts is $12,600 prior to the adjusting entries at the end of the period the accounts indicates that an allowance of $81,200 is needed. The amount of expense to record is:

Select one:

a. $68,600.

b. $62,000.

c. $68,200.

d. $61,380.

The best step to ensure good internal controls in the payroll area is:

Select one:

a. Using a payroll bank account.

b. Separating payroll duties.

c. Using a payroll register.

d. Using time cards.

The main reason for using a separate payroll bank account is to:

Select one:

a. Safeguard cash by limiting paycheques to amounts based on time cards.

b. Safeguard cash by preventing the writing of payroll cheques to fictitious employees.

c. Increase efficiency by isolating payroll disbursements for analysis and control.

d. All of the above.

Which of the following represents a cost to the employer?

Select one:

a. Withheld income tax.

b. Employment Insurance.

c. Canada Pension Plan.

d. Both B and C

The total payroll expense of the employer is equal:

Select one:

a. Net pay plus employer payroll taxes and fringe benefits

b. Gross pay plus employees' income tax

c. Net pay plus employee withholdings

d. Gross pay plus employer payroll contributions and fringe benefits

Which of the following liabilities creates no expense for the company?

Select one:

a. Employment Insurance

b. Warranty

c. Interest

d. Sales tax

A $11,000, 10 percent, one-year note payable was issued on July 31. The balance sheet at December 31 will report interest payable of: (Use 365 days per year when calculating interest accruals and expense.)

Select one:

a. $461.10

b. $0, because interest is not due yet

c. $1,100.00

d. $638.90

Special journals help most by:

Select one:

a. Easing the preparation of the financial statements

b. Improving accuracy in posting to subsidiary ledgers

c. Limiting the number of transactions that have to be recorded

d. Reducing the cost of operating the accounting system

can you. please help me for solve this multiple question.

Top Answer

Question 1 Answer is c. Objective... View the full answer

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