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Study Resources (Accounting)

56.  Internal control classification Several common internal controls for information technology are listed below. Indicate whether each is primarily preventive, detective or corrective in nature; also indicate whether each is a general control or an application control. .
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Short answer: The following scenario applies to Questions 61 through 65: A fellow student in one of your classes struck up a conversation one day. "What's your major," he asked. "Accounting," you replied. "Wow I've heard accounting is a tough major. What accounting classes are you taking this term?" You started talking.
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53.  AIS and other areas of accounting  - Indicate whether each of the following statements regarding accounting information systems is (a) always true, (b) sometimes true or (c) never true. You do not need to write a justification for the statements that are sometimes true. 1.A well designed accounting information system.
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57.  COSO enterprise risk management framework Debbie, Amy and Lynn all work for PPK Corporation; they recently had the conversation below about risk management. Specify the element of the COSO enterprise risk management framework that most clearly applies to each underlined phrase in the conversation. Debbie: Our boss has asked us.
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59.  Internal controls revision Consider the list of internal control weaknesses listed below. Revise each one to make it stronger. a.  Any employee in a firm can sign checks. b.  Checks from clients can be made out to the firm or any of the partners individually. c.  One of the partners.
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56. Internal controls Sebastian's Coffee Shop makes and sells specialty coffee drinks, sandwiches and pastries. Sebastian has hired you to construct the shop's first chart of accounts; he wants to use a block coding system. Use the principles of block coding to assign account numbers to the accounts listed below. .
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Short answer questions The following scenario applies to Questions 61 – 65: You're "doing the books" for a local consulting firm as part of an internship. The rest of the consultants don't have much background in accounting; they're very curious about the work you do and your college studies. 61.  List.
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21. Explaining a person's ethics by analyzing the ethics of his ancestors is an example of: a.Meta-ethics.b.Normative ethics.c.Applied ethics.d.Situational ethics. 22. "People shouldn't cheat" is an example of: a.Meta-ethics.b.Normative ethics.c.Applied ethics.d.Situational ethics. 23. Debating the ethics of insider trading best describes: a.Meta-ethics.b.Normative ethics.c.Applied ethics.d.Situational ethics. 24. The four schools of ethical thought discussed in the chapter.
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31.  The text identified four basic purposes of internal control and several examples of specific controls. Which of the following demonstrates the strongest relationship between them? a.Safeguarding assets, bank reconciliation.b.Ensuring financial statement reliability, pre-numbered documents.c.Promoting operating efficiency, bank reconciliation.d.Encouraging compliance with management directives, pre-numbered documents. 32.  Which of the following four pairs.
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41.  A company's chart of accounts is block coded and contains the following information: Accounts payable (201), Wages payable (204), Interest payable (207). The account number for "accounts receivable" is therefore likely to be: a.302.b.211.c.202.D.102. 42.  Which of the following is most likely to employ sequential coding? a.Amounts on a cash register.
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41.  Processes like separation of duties and internal audits are most closely associated with which element of the COSO internal control framework? a.Definition of internal control.b.Control activities.c.Monitoring.d.Risk response. 42.  Insurance and bonding are examples of which part of the COSO risk management framework? a.Risk response.b.Objective setting.c.Information and communication.d.Basic purposes of internal control. 43.  Using.
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58.  Accounting information system definition - According to the text, an accounting information system is a set of interrelated activities, documents and technologies designed to collect data, process it and report information to a diverse group of internal and external decision makers in organizations. Consider that definition in light of.
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Problems 51.  Definition of ethics: Fill in the missing terms below based on the text's definition of ethics. The field of ethics, also called ______ ______, involves systematizing, ______, and recommending concepts of right and wrong behavior. Philosophers today usually divide ethical theories into three general subject areas. ______ investigates where.
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Problems: 51.  AIS definition  - Use terms from the following list to fill in the blanks in the definition of accounting information systems: ActivitiesDataDecision makersDiverseDocumentsInformationInterrelatedTechnologies An accounting information system is a set of ___ ___, ___ and ___ designed to collect ___, process it and report ___ to a ___ group of internal.
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31.  Ponzi's actions most directly violate which element of the IMA Code of Ethics? a.Credibility.b.Confidentiality.c.Collective identity.d.Responsibilities to clients. 32.  In connection with the Enron bankruptcy, Skilling was most likely following which school of ethical thought? a.Virtues.b.Utilitarianism.c.Normative ethics.d.Justice. 33.  Enron's failure to disclose key facts in its financial statements most clearly violated which standard of.
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59. Resolution of ethical dilemmas The steps in Langenderfer and Rockness' model of ethical decision making are paraphrased below. Put the steps in the correct order. ______ a. Carry out the decision.______ b. Determine the ethics issues and the people involved.______ c. Estimate the potential results of each possible course of.
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11.  Internal Control: Integrated Framework includes all of the following except: a.Control environment.b.Risk assessment.c.Control assessment.d.Monitoring. 12.  According to Enterprise Risk Management: Integrated Framework, risk can be: a.Internal or external.b.General or specific.c.Financial or operational.d.Inherent or residual. 13.  The terms "preventive, detective and corrective" are most closely associated with which element of Internal Control? Integrated Framework? a.Control.
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54.   Ethics models In the space provided, indicate whether each of the following statements best exemplifies: (a) utilitarianism model of ethics, (b) justice model of ethics, (c) rights and duties model of ethics,   (d) virtues model of ethics. _____ 1. All's well that ends well._____ 2. He'll get what's coming.
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21.  An organization paid for a six-month insurance policy in November. At the end of December, the organization should make an adjusting entry for: a.Depreciation.b.An accrued expense.c.A prepaid expense.d.Uncollectible accounts. 22.  Which of the following best explains "transaction limits" as an internal control? a.Two signatures are required on all checks.b.A bank teller.
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The following situation applies to Questions 41 through 45: Chris was developing his divisional budget for the upcoming fiscal year. He was fairly confident his total expenses would be $40,000 and his total revenue $60,000; but, in the budget, he understated his revenue and overstated his expenses to make it easier.
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21.  Cortez works for a large retailer that sells various kinds of linens (towels, sheets, blankets, pillow cases). In completing a risk assessment for his organization, which of the following questions should he ask first? a.What risks should we prepare for?b.How can information technology help guard against risk?c.Do we need an.
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60.Ethics models Several statements regarding ethics are listed below. Group them according to the four schools of ethical thought discussed in the text. a. All's well that ends well.b. He'll get what's coming to him.c. His actions are immoral; there's no other way to look at it.d. In the long.
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55.  Professional characteristics and accounting In the space provided, indicate whether each phrase most clearly exemplifies: (a) specialized knowledge base, (b) complex skills, (c) autonomy of practice or (d) adherence to a code of ethical behavior. _____ 1. Advising others about conflicts of interest._____ 2. Behaving with integrity._____ 3. Calculating the.
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59.  Internal controls and risk LM Enterprises provides temporary office staff to businesses in its geographic area. In LM's operations, "candidate" refers to a person seeking a position; "client" refers to a business seeking temporary staff. "Employee" refers to a member of LM's staff. Several risks associated with LM are.
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54.  Internal control legislation Several elements of the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act are listed below. Place an "X" in the appropriate column to indicate which Act is most closely associated with each element. If an item applies to both, place an "X" in both columns. .
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11. Which type of coding system helps users remember the meaning of the code? a.Sequential.b.Hierarchical.c.Mnemonic.d.Block. 12.  ___ codes are a more sophisticated form of ___ codes. a.Block, hierarchical.b.Block, mnemonic.c.Mnemonic, sequential.d.Hierarchical, block. 13. Human judgment is important in the accounting cycle for: a.Preparing a trial balance.b.Recognizing recordable transactions.c.Filling out source documents.d.Posting transactions to the.
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54.  Importance of AIS study  - Accounting information systems is important because it helps students develop their ability to respond to open-ended problems. Which of the following are open-ended? Place an "X" in the appropriate column. Hurt: Accounting Information Systems             © McGraw-Hill Companies, 2010 Chapter 1 .
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31.  Which of the following requires the most human judgment? a.Accounting.b.Bookkeeping.c.Posting.d.Journalizing. 32.  Which of the following requires the least human judgment? a.Accounting.b.Bookkeeping.c.Making estimates.d.Preparing financial statements. 33.  Which of the following best demonstrates an "informed judgment" as the term is used in the a. American Accounting Association's definition of accounting? a.Deciding whether to debit or.
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53.  Accounting cycle Explain the meaning of each of the following journal entries. The first is provided as an example. 54. Accounting and bookkeeping comparison Indicate whether each of the following statements applies to: (a) accounting alone, (b) bookkeeping alone, (c) both accounting and bookkeeping or (d) neither accounting nor.
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52. Accounting cycle The steps in the accounting cycle are listed below in random order. Indicate the correct order in the space provided. If a step does not belong in the accounting cycle, mark it with an "X." _____ Analyze transactions_____ Audit financial statements_____ Close the temporary accounts to retained earnings_____.
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55.  Information evaluation criteria  -  Bumble Beasley took two introductory accounting courses as part of his college degree; his major was engineering. He started his own engineering consulting company and later published an article in an engineering journal titled "The Relationship between Engineering and the FASB Conceptual Framework." The article,.
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Multiple Choice Questions 1. According to the COSO definition, internal control is a(n): a.Set of procedures.b.Process.c.Checklist.d.Way to eliminate risk. 2. According to the COSO definition, internal controls should provide: a.Reasonable assurance.b.Punishments for dishonest employees.c.Sufficient justification for prosecuting criminals.d.Guarantees that no fraud exists in the accounting information system. 3.  According to the COSO definition, who.
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Short answer questions The following scenario applies to Questions 61 through 65: Ruby is a self-employed consultant who designs internal control systems; she recently made a presentation to a local chapter of the Institute of Management Accountants. After the presentation, Barb approached her with some questions. Barb is the accountant for Top.
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64.  Brown's risk taxonomy includes four major categories: financial, operational, strategic and hazard. In your own words, differentiate the four types; give an example of each type that relates directly to Top Notch T-Shirt Printing. Do not list the subcategories for each major category. 65.  Explain four specific risks Top Notch.
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11. In the Langenderfer and Rockness model, which of the following steps comes first? a.Evaluate the consequences of possible courses of action.b.Reach a decision.c.Identify stakeholders involved.d.Consult the company's code of ethics. 12. Identifying the facts is step ___ in the Langenderfer and Rockness model. a.One.b.Two.c.Three.d.Identifying the facts is not a step in.
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56. Resolution of ethical dilemmas Jenna completed the following actions in a recent ethics investigation. Put the actions in the order recommended by Langenderfer and Rockness. ______ a. Talked with her boss about her proposed action.______ b. Suggested two possible actions: fire the employees or make them repay the amount stolen.______ c..
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Multiple Choice Questions 1.  Accounting is often confused with: a.Bookkeeping.b.Finance.c.Information systems.d.Tax research. 2.  Which of the following statements is most true? a.Accounting is the part of bookkeeping devoted to identifying and measuring economic information. b.Bookkeeping is the part of accounting devoted to identifying and measuring economic information. c.Bookkeeping is the part of accounting associated with.
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53.  COSO internal control framework The elements of COSO's internal control framework are listed below on the right; examples of the elements are listed on the left. Match each item on the left with the framework section that most clearly applies. ____ 1. A CEO makes a strong statement about the.
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Short answer questions The following scenario applies to Questions 61 – 65: Viola is an accountant in a small corporation. She recently started graduate school at an elite private university; to defray some of her school expenses, she takes supplies (paper, pens, notebooks, computer disks and so on) from work to use.
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55.  Sebastian's Coffee Shop makes and sells specialty coffee drinks, sandwiches and pastries. Several risks associated with the shop's operations are listed below on the left; several internal controls are listed on the right. Match each risk with the internal control most likely to reduce it. Use each internal control.
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58. Recent ethics cases In the space provided, indicate whether each of the following most clearly applies to: (a) Ponzi, (b) Adelphia or (c) Enron/Arthur Andersen. ______ a. Earliest of the three.______ b. Funded personal loans for owners.______ c. International postal reply coupons.______ d. Jeff Skilling.______ e. John Rigas.______ f. Latest.
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Multiple Choice Questions 1. Which of the following is not a characteristic of a professional defined by Bell? a.Appropriately uses philosophical knowledge.b.Communicates effectively.c.Actively seeks additional knowledge.d.Integrates knowledge from many disciplines. 2.  According to Bell, a professional should think: (i) rationally, (ii) effectively, (iii) coherently. a.i and ii only.b.ii and iii only.c.i and iii only.d.i,.
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 Problems 51. Definition of accounting. Fill in the blanks to complete the American Accounting Association's definition of accounting. Accounting is the process of ______, ______, and communicating ______ information to permit ______ ______ and decisions by ______ of the ______. Answer: Accounting is the process of identifying, measuring, and communicating economic information to.
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60.  Internal controls and risk BSR Inc. is the corporate office of a chain of coffee shops around the United States. Dudley Baker is considering opening a franchised location with BSR's support, and has asked BSR management about potential risks and ways to address them. Several risks associated with the.
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Problems 51.  Risk taxonomy Match each item on the left with the most appropriate item on the right. _____ 1. Business strategy risk._____ 2. Credit risk._____ 3. Directors' and officers' liability._____ 4. Human error risk._____ 5. Legal and regulatory risk._____ 6. Liquidity risk._____ 7. Market risk._____ 8. Systems risk. a. Financial risk.b. Hazard.
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53.  Professional ethical codes In the space provided, indicate whether each item listed belongs to the IMA Code of Ethics, the AICPA Code of Professional Conduct or the ACFE Code of Ethics. ______ a. Abstain from engaging in or supporting any activity that might discredit the profession.______ b. Disclose delays or.
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