Q1. Which statement is not an advantage of robotic process automation (RPA)?
Q2. What effect does a contra asset account have on a balance sheet?
Q3. Internal controls may be preventative, detective, corrective, or directive. Which is a detective control?
Q4. On March 15, a business receives an invoice from the power company for utilities used in February. The retailer pays the invoice on April 1. The business uses accrual-based accounting. Which month should the business recognize the expense?
Q5. Which choice is a general guideline for adequate separation of duties to prevent both fraud and error?
Q6. What does the cost of a unit of product under absorption costing method consist of?
Q7. Which answer best describes accruals and deferrals?
Q8. What do you call a situation where more than one person collaborates to circumvent existing internal controls?
Q9. Which is not an example of an internal control activity?
Q10. Which budgeting approach request justification of all expenditures?
Q11. What does the discontinued operations section of the income statement refer to?
Q12. How are the three financial statements (income, statement, balance sheet, and cash flow statement) linked?
Q13. Which is not one of the four perspectives of the balanced scorecard?
Q14. What would be deducted from the balance per books when doing a bank reconciliation?
Q15. What situation could be the results of the three retails store employees sharing the same cash register?
Q16. A firm has $1,000 in debt and $3,000 in assets. What is the firm’s debt-to-equity ratio?
Q17. An external auditor is required to be independent when performing
Q18. Proper segregation of functional responsibilities calls for separation of
Q19. What does the degree of operating leverage represent?
Q20. Which characteristic would concern an auditor about the risk of material misstatements arising from fraudulent financial reporting?
Q21. An employee who makes a sale, ships the goods, and bills the customer violates which control activity?
Q22. What trait distinguishes auditors from accountants?
Q23. What is the purpose of an operational audit?
Q24. Which statement is false?
Q25. Which choice is not a component of internal control?
Q26. What is the difference between the cost of an asset and the accumulated depreciation for that asset?
Q29. Who does an audit committee report to?
Q30. A business purchased office equipment by issuing aone-year note payable. The entire amount of the note is due at the end of one year. How do you record this transaction?
Q31. Which section of a financial annual report describes the corporation’s accounting methods?
Q32. What does “independence” mean in auditing?
Q33. What would cause a bank to increase a depositor’s account?