Accounting Stating True Or False Questions Homework Help
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1)With a periodic inventory method, purchases, purchase discounts, and purchase returns and allowances are recorded in separate accounts.
2) With a periodic inventory method, it is necessary to conduct a physical count of inventory to determine cost of goods sold.
3) Under the Sarbanes-Oxley Act, the outside auditor must issue an internal control report.
4) The Public Company Oversight Board oversees the work of auditors of public companies.
5) Under the Sarbanes-Oxley Act, accounting firms are prohibited from both auditing a client and providing certain consulting services for the same client.
6) Under the Sarbanes-Oxley Act, violators may be sentenced to prison for securities fraud.
7)The control environment is one of the five components by which a company can achieve its internal control objectives.
8) Risk assessment is the “tone at the top” of a business, starting with the owner and the top managers.
9) External auditors monitor company controls to safeguard assets and ensure that employees are following company policies.
10) Internal auditors evaluate company controls to ensure the accuracy of financial statements.
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11) Mandatory vacations and job rotation improve internal control.
12) Separation of duties limits fraud and promotes the accuracy of the account records.
13) A point-of-sale terminal (cash register) provides control over cash in the form of a tape record of sales which is compared to the count of the drawer.
14) As part of the internal control over cash receipts by mail, the mail room sends both the customer checks and the remittance advice’s to the accounting department.
15) Regarding controls over cash receipts by mail, the bank deposit slip should be compared to the remittance advices by the accounting department.
16) For strong controls over cash receipts, the checks to be deposited should be sent to the treasurer and the remittance advices should be sent to the accounting department.
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