Financial Accounting 2

44 Questions

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Financial Accounting Quizzes & Trivia

Why do i have to take this stupid ass class? This is my 2nd time if i fail, then it's gonna be my 3rd time which is going to suck!


Questions and Answers
  • 1. 
    The person who writes the check to pay bills is different from the people who authorize the payments and keep records of the payments
    • A. 

      Sound personnel policies

    • B. 

      Physical controls

    • C. 

      Separation of duties

    • D. 

      Authorization

  • 2. 
    The checks are kept in a locked drawer. the only person who has the key is the person who writes the checks
    • A. 

      Authorization

    • B. 

      Physical controls

    • C. 

      Documents and records

    • D. 

      Separation of duties

  • 3. 
    The person who writes the checks is bonded
    • A. 

      Authorization

    • B. 

      Recording transactions

    • C. 

      Physical controls

    • D. 

      Sound personnel policies

  • 4. 
    Once each month the owner compares and reconciles the amount of money shown in the accounting records with the amount in the bank account
    • A. 

      Authorization

    • B. 

      Documents and records

    • C. 

      Recording transaction

    • D. 

      Physical controls

    • E. 

      Periodic independent check

  • 5. 
    The owner of the business approves each check before it is mailed
    • A. 

      Authorization

    • B. 

      Recording transactions

    • C. 

      Documents and records

    • D. 

      Physical controls

  • 6. 
    Information pertaining to each check is recorded on the check stub
    • A. 

      Authorization

    • B. 

      Recording transactions

    • C. 

      Documents and records

    • D. 

      Periodic independent checks

  • 7. 
    Every day, all checks are recorded in the accounting records, using the information on the check stubs
    • A. 

      Recording transactions

    • B. 

      Documents and records

    • C. 

      Periodic independent checks

    • D. 

      Physical controls

  • 8. 
    Effective separation of duties in a restaurant is impractical because the business is too small
    • A. 

      Human error

    • B. 

      Collusion among employees

    • C. 

      Changed conditions

    • D. 

      Cost benefit considerations

  • 9. 
    The cashier and the manager of a retail shoe store work together to avoid the internal controls for the purpose of embezzling funds
    • A. 

      Human error

    • B. 

      Collusion among employees

    • C. 

      Changed conditions

    • D. 

      Cost benefit considerations

  • 10. 
    The cashier in a pizza shop does not understand the procedures for operating the cash register and thus fails to ring up all the sales and count the cash at the end of the day
    • A. 

      Human error

    • B. 

      Collusion among employees

    • C. 

      Changed conditions

    • D. 

      Cost benefit considerations

  • 11. 
    At a law firm, computer supplies are mistakenly delivered to the reception area instead of the receiving area because the supplier began sing a different system of shipment. as a result, the receipt of supplies is not recorded
    • A. 

      Human error

    • B. 

      Collusion among employees

    • C. 

      Changed conditions

    • D. 

      Cost benefit considerations

  • 12. 
    Management places a supplies clerk in charge of a secured storeroom for cleaning supplies(may have more than one answer)
    • A. 

      Recording transactions

    • B. 

      Physical control

    • C. 

      Authorization

    • D. 

      Documents and records

    • E. 

      Sound personnel policies

  • 13. 
    Supervisors use a purchase requisition to request supplies for the jobs they oversee(may have more than one answer)
    • A. 

      Separation of duties

    • B. 

      Documents and records

    • C. 

      Recording transactions

    • D. 

      Periodic independent checks

    • E. 

      Authorization

  • 14. 
    Each job receives a predetermined amount of supplies based on a study of each job's needs(may have more than one answer)
    • A. 

      Authorization

    • B. 

      Physical controls

    • C. 

      Sound personnel policies

    • D. 

      Documents and records

    • E. 

      Separation of duties

  • 15. 
    In the storeroom, the supplies clerk notes the levels of supplies and completes the purchase requisition when new supplies are needed(may have more than one answer)
    • A. 

      Authorization

    • B. 

      Separation of duties

    • C. 

      Documents and records

    • D. 

      Physical controls

    • E. 

      Sound personnel policies

  • 16. 
    The purchase requisition goes to the purchasing clerk to ensure that the lowest price is obtained(may have more than one answer)
    • A. 

      Sound personnel policies

    • B. 

      Physical controls

    • C. 

      Authorization

    • D. 

      Periodic independent verification

    • E. 

      Separation of duties

  • 17. 
    When supplies are received, the supplies clerk checks them in and prepares a receiving report. the supplies clerk sends the receiving report to accounting, where each payment to a supplier is documented by the purchase requisition, the purchase order, and the receiving report(may have more than one answer)
    • A. 

      Recording transactions

    • B. 

      Documents and records

    • C. 

      Authorization

    • D. 

      Physical controls

    • E. 

      Separation of duties

  • 18. 
    The accounting department also maintains a record of supplies inventory, supplies requisitioned by supervisors and supplies received(may have more than one answer)
    • A. 

      Documents and records

    • B. 

      Recording transactions

    • C. 

      Separation of duties

    • D. 

      Authorization

    • E. 

      Physical controls

  • 19. 
    Once each month, the warehouse manager takes a physical inventory of cleaning supplies in the storeroom and compares it against the supplies inventory records that the accounting department maintains(may have more than one answer)
    • A. 

      Documents and records

    • B. 

      Recording transactions

    • C. 

      Physical controls

    • D. 

      Sound personnel policies

    • E. 

      Periodic independent verification

  • 20. 
    Supplier prices are monitored constantly by the purchasing clerk to ensure that the lowest price is obtained
    • A. 

      Sound personnel policies

    • B. 

      Authorization

    • C. 

      Separation of duties

    • D. 

      Periodic independent verification

    • E. 

      Physical control

  • 21. 
    Paving costs
    • A. 

      Land

    • B. 

      Land improvements

    • C. 

      Buildings

  • 22. 
    Architects' fee for building design
    • A. 

      Land

    • B. 

      Land improvements

    • C. 

      Buildings

  • 23. 
    Cost of clearing the property
    • A. 

      Land

    • B. 

      Land improvements

    • C. 

      Buildings

  • 24. 
    Cost of the property
    • A. 

      Land

    • B. 

      Land improvements

    • C. 

      Buildings

  • 25. 
    Building construction costs
    • A. 

      Land

    • B. 

      Land improvements

    • C. 

      Buildings

  • 26. 
    Lights around the property
    • A. 

      Land

    • B. 

      Land improvements

    • C. 

      Buildings

  • 27. 
    Building permit
    • A. 

      Land

    • B. 

      Land improvements

    • C. 

      Buildings

  • 28. 
    Interest on the construction loan
    • A. 

      Land

    • B. 

      Land improvements

    • C. 

      Buildings

  • 29. 
    Definition of internal controls
  • 30. 
    4 objectives of internal controls
  • 31. 
    Four limitations of internal controls, explain what they mean, and give examples
  • 32. 
    Two inventory methods and explain what they mean
  • 33. 
    4 inventory flows and explain what they mean
  • 34. 
    Advantages/disadvantages of FIFO and LIFO
  • 35. 
    Bank reconciliationwhat it means, what is the problem
  • 36. 
    What is the difference between notes receivable and accounts receivable?
  • 37. 
    Time value of moneygoal and example
  • 38. 
    5 reasons why we charge interest on borrowed money:
  • 39. 
    Contingent liabilities:two liabilities, give an example, and what is the principle for this contingent liability?
  • 40. 
                                                   FASB can estimate          Contingent liabilities can’t estimate Probable Possible Remote
  • 41. 
    Accounting for long term assetsgive 3 reasons why long term assets are used, example
  • 42. 
    three different depreciation methods and explain what they are
  • 43. 
    net book value of a fixed asset equations
  • 44. 
    calculation of depreciation methods:give equations