ACING MBA 510 MOD 4 EXAM WITH THE LATEST A+ QUESTIONS AND ANSWERS STUDY COMPANION.

ACING MBA 510 MOD 4 EXAM WITH THE LATEST A+ QUESTIONS AND ANSWERS STUDY COMPANION. An internal control system is used to do all of the following: protect assets ensure reliable accounting cash currency coins deposits in bank account items acceptable for deposits currency and coins: $12,500 customer checks on hand (not yet deposited): $37,000 Investment in 3-month U.S. Treasury bills: $10,000 Investment in Microsoft common stock: $15,000 $59,500 (currency and coins + customer checks + investment in 3 month treasury bills) Which of the following is a correct statement regarding control of over-the-counter cash receipts: The supervisor should compare the register transactions with the cash receipts report to make sure that both are correct. steps in preparing bank reconciliation 1. Enter the bank statement balance from the bank statement. 2. Add any unrecorded deposits to the bank balance. 3. Subtract outstanding checks from the bank balance. 4. Compute the adjusted bank balance. 5. Enter the company's book balance from its accounting records. 6. Add any unrecorded interest earned to the book balance. 7. Subtract bank fees from the book balance. 8. Compute the adjusted book balance. Which of the following are correct regarding why management uses internal controls? PPUE protect assets. promote efficient operations. uphold company policies. ensure reliable accounting. Which of the following are principles of internal control? DPEM -Divide responsibility for related transactions. -Perform regular and independent reviews. -Establish responsibilities. -Maintain adequate records. Which of the statements below explains how technology has impacted internal control systems? -Technology has reduced the number of processing errors. -Technologically advanced systems can record who made entries, the date and time of the entry and the source of the entry. -BUT, Technology has also encouraged the growth of e-commerce, which means that there is a higher risk of credit card number theft. Auditors focus more on testing the _____________ of a company's blockchain processes and technology than on verifying the ______________ of its output. effectiveness accuracy The triple threat of fraud involves: opportunity rationalization pressure What is the purpose of internal controls? to protect assets and ensure reliable accounting A good internal control to protect cash is to make cash payments using checks principles of internal controls SPEMIA -Separate record keeping from custody of assets. -Perform regular and independent reviews. -Establish responsibilities. -Maintain adequate records. -Insure assets. -Apply technological controls. Liquidity refers to a company's ability to pay for its ____________________ ___________________ current liabilities Each of the following are types of technological impacts related to internal control: RNSM -reduced processing errors -new evidence of processing -separation of duties -more extensive testing of records All of the following describe blockchain: -blockchain makes it more difficult for the ledger to be modified without a detailed record of changes -blockchain is continuously and simultaneously updated and verified -Plan cash receipts to meet cash payments when due. -Keep a minimum level of cash necessary to operate. goals of good cash management Can occur from carelessness, misjudgment or confusion human error Involves intent by people to defeat internal controls for personal gain human fraud Dictates that the costs of internal controls must not exceed their benefits cost benefit principle Management must convey commitment to internal control policies and procedures internal control environment Which of the answers below correctly describe the Cash Over and Short account? -It records the effects of cash overages and cash shortages. -It is an income statement account. -A debit balance reflects an expense. Identify the basic internal control guidelines which should be in place to protect a business's cash -Handling cash is separate from record keeping of cash. -Cash payments are made by check. -Cash receipts are promptly deposited in a bank. A petty cash fund is used for _________ payments small Which statement below explains why liquid assets are needed in a business? liquid assets must be available to pay current liabilities Lists currency, coins and checks deposited into an account deposit ticket A document signed by the depositor instructing the bank to pay a specified amount of money check Used to deposit money for safekeeping and help control withdrawals. bank account Explains the reason for payment Remittance advice Electronic transfer of cash from one party to another electronic funds transfer Which of the statements below describe the goals and principles of cash management? (Check all that apply.)