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    Ais Final Quiz

    Uploaded by

    Claudette Clemente
    This document contains 30 multiple choice questions testing knowledge of accounting concepts and internal controls. It covers topics like the revenue cycle, purchase process, inventory tracking, and segregation of duties. The questions assess understanding of key terms, documents, ledgers, and control procedures within the accounting process. Most responses received partial credit, showing some but not full mastery of the concepts being tested.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Ais Final Quiz

    Uploaded by

    Claudette Clemente
    96 views5 pages
    This document contains 30 multiple choice questions testing knowledge of accounting concepts and internal controls. It covers topics like the revenue cycle, purchase process, inventory tracking, and segregation of duties. The questions assess understanding of key terms, documents, ledgers, and control procedures within the accounting process. Most responses received partial credit, showing some but not full mastery of the concepts being tested.

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    This document contains 30 multiple choice questions testing knowledge of accounting concepts and internal controls. It covers topics like the revenue cycle, purchase process, inventory tracking, and segregation of duties. The questions assess understanding of key terms, documents, ledgers, and control procedures within the accounting process. Most responses received partial credit, showing some but not full mastery of the concepts being tested.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    96 views5 pages

    Ais Final Quiz

    Uploaded by

    Claudette Clemente
    This document contains 30 multiple choice questions testing knowledge of accounting concepts and internal controls. It covers topics like the revenue cycle, purchase process, inventory tracking, and segregation of duties. The questions assess understanding of key terms, documents, ledgers, and control procedures within the accounting process. Most responses received partial credit, showing some but not full mastery of the concepts being tested.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 5

    Item 1

    An essential part of the revenue cycle is filling customer orders and shipping goods to
    customers. Automating warehouse systems cut costs, improve efficiency, and enable more
    customer-responsive shipments. Which of the following elements is required for an automated
    perpetual inventory system?
    Response: Bar-code scanners
    Correct answer: Bar-code scanners
    Score: 1 out of 1 Yes

    Item 2
    To minimize the risk that purchasing agents will use their positions for personal gain, an entity
    should
    Response: Specify that all items purchased must pass quality control tests.
    Correct answer: Require competitive bidding.
    Score: 0 out of 1 No

    Item 3
    Which of the following is an essential control procedure to ensure the accuracy of the recorded
    inventory quantities?
    Response: Calculating unit costs and valuing obsolete or damaged inventory items in
    accordance with inventory policy.
    Correct answer: Establishing a cutoff for goods received and shipped.
    Score: 0 out of 1 No

    Item 4
    A sound internal control procedure should require that defective merchandise returned by
    customers be presented initially to the
    Response: Receiving clerk.
    Correct answer: Receiving clerk.
    Score: 1 out of 1 Yes

    Item 5
    The basic document created in the billing process is the
    Response: Sales invoice
    Correct answer: Sales invoice
    Score: 1 out of 1 Yes

    Item 6
    In a well-designed internal control system, employees in same department most likely would
    approve purchase orders and also
    Response: Negotiate terms with vendors.
    Correct answer: Negotiate terms with vendors.
    Score: 1 out of 1 Yes

    Item 7
    Which of the following is probably the most effective control prevention of kickbacks to
    purchasing agents?
    Response: Good supervision in the purchasing area.
    Correct answer: A corporate policy to prohibit purchasing agents from accepting kickbacks.
    Score: 0 out of 1 No
    Item 8
    Which of the following ledger is designed for the storage of specific types of accounting
    transactions?
    Response: Subsidiary
    Correct answer: Subsidiary
    Score: 1 out of 1 Yes

    Item 9
    Which of the following refers to accounts that has to be cleared at the end of each fiscal year
    through Period End Closing process?
    Response: BALANCE SHEET
    Correct answer: PROFIT AND LOSS/INCOME STATEMENT/TEMPORARY
    Score: 0 out of 1 No

    Item 10
    A properly designed internal control should require that defective merchandise returned by
    customers be presented initially to the
    Response: Inventory control clerk.
    Correct answer: Receiving clerk.
    Score: 0 out of 1 No

    Item 11
    Which of the following is a special or specialized journal is used to record sales of merchandise
    to customers?
    Response: Sales Journal
    Correct answer: Sales Journal
    Score: 1 out of 1 Yes

    Item 12
    Which of the following is a record kept by accountants to record all financial expenditures made
    by a company?
    Response: Cash Receipt Journal
    Correct answer: Purchase Journal
    Score: 0 out of 1 No

    Item 13
    Which of the following is a record of all acquisitions made on credit during a period?
    Response: Purchase Journal
    Correct answer: Purchase Journal
    Score: 1 out of 1 Yes

    Item 14
    Which of the following controls is not usually performed in the accounts payable department?
    Response: Indicating on the voucher the affected asset and expense accounts to be debited.
    Correct answer: Accounting for unused prenumbered purchase orders and receiving reports.
    Score: 0 out of 1 No

    Item 15
    What document is prepared to authorize the removal of the necessary quantity of raw materials
    from storeroom to factory?
    Response: Production order
    Correct answer: Materials requisition
    Score: 0 out of 1 No

    Item 16
    Which of the following is not a source document for the revenue cycle?
    Response: Credit memo
    Correct answer: Receiving report
    Score: 0 out of 1 No

    Item 17
    Which of the following is a special journal used to record money received?
    Response: Cash Receipt Journal
    Correct answer: Cash Receipt Journal
    Score: 1 out of 1 Yes

    Item 18
    The easiest way to prevent the acceptance of unordered goods is to
    Response: Have an appropriate conflict of interest policy in place.
    Correct answer: Always require that a valid purchase order exists before goods can be
    accepted at the time of delivery.
    Score: 0 out of 1 No

    Item 19
    Which of the following is a financial organizational tool that provides a complete listing of every
    account in an accounting system?
    Response: FINANCIAL
    Correct answer: CHART OF ACCOUNTS
    Score: 0 out of 1 No

    Item 20
    Which of the following activities is not part of the revenue cycle?
    Response: Billing
    Correct answer: Receiving
    Score: 0 out of 1 No

    Item 21
    Which of the following is not an objective of the revenue/receipt cycle?
    Response: Approved sales orders are shipped on a timely basis and in accordance with
    customer specifications.
    Correct answer: Received goods are counted and inspected for quality
    Score: 0 out of 1 No

    Item 22
    Which of the following refers to accounts that reflect the monitory value of the company - stock,
    assets, debt, etc. These accounts are carried over from one fiscal year to the next?
    Response: FINANCIAL
    Correct answer: BALANCE SHEET
    Score: 0 out of 1 No

    Item 23
    Which of the following controls most likely would provide reasonable assurance that all credit
    sales transactions of an entity are recorded?
    Response: The accounting department supervisor independently reconciles, on a monthly
    basis, the accounts receivable subsidiary ledger to the accounts receivable control account.
    Correct answer: The billing department supervisor matches prenumbered shipping documents
    with entries in the sales journal.
    Score: 0 out of 1 No

    Item 24
    As part of its purchasing system, an entity's receiving department receives copies of purchase
    orders for use in identifying and recording goods received. The purchase orders list the name of
    the vendor and the quantities of the materials ordered. A possible error that this system could
    allow is
    Response: Payment for unauthorized purchases.
    Correct answer: Overpayment of partial deliveries.
    Score: 0 out of 1 No

    Item 25
    ________ is the maximum allowable account balance for a given customer.
    Response: Credit limit
    Correct answer: Credit limit
    Score: 1 out of 1 Yes

    Item 26
    In the revenue cycle, a customer places an order for a certain product. What step should be
    taken before the order is checked for inventory availability?
    Response: The shipping department should be notified of an order in process.
    Correct answer: The customer's credit should be checked for a sale on account.
    Score: 0 out of 1 No

    Item 27
    For effective internal control, employees maintaining the accounts receivable subsidiary ledger
    should not also approve
    Response: Employee overtime wages.
    Correct answer: Write-offs of customer accounts.
    Score: 0 out of 1 No

    Item 28
    Which of the following is a record of financial transactions in order by date and it is often
    defined as the book of original entry?
    Response: Sales Journal
    Correct answer: Journal
    Score: 0 out of 1 No

    Item 29
    Which of the following is a unique record for each type of asset, liability, equity, revenue and
    expense?
    Response: [none]
    Correct answer: Accounts
    Score: 0 out of 1 No
    Item 30
    In a well-designed internal control, the same employee be permitted to
    Response: [none]
    Correct answer: Mail signed checks and also cancel supporting documents.
    Score: 0 out of 1

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