Chapter 8 Fraud, Internal Control and Cash

True or False: Does SOX stand for Sarbanes-Oxley Act?

• True

• False

What is one of the six primary components of Internal Control?

• Establishment of Responsibility

• Safeguard Assets

• Efficiency of Operations

• Financial Pressure

What are the three factors that contribute to fraudulent activity?

• Reliable, Effective, and Independent

• Opportunity, Financial Pressure, and Rationalization

• Safety, Responsibility, and Application

• Identify, Recall, and Fortitude

What year did the Sarbanes-Oxley Act get passed?

• 2000

• 2022

• 2002

• 2021

What is one purpose of Internal Control?

• Balance of Cash

• Bank memorandum

• Segregation of duties

• Ensure compliance with laws and regulations

What is a reason for a time lag?

• Deposits in transit

• Employee Malfunction

• Fraudulent Activity

• Server Issues

What does GAAP stand for?

• Generally Accounted Accessing Principles

• Generally Accepted Accounting Principles

• Generally Accepted Accounting Policies

Name a type of physical control

• Phone

• Notepad

• Safety Deposit Boxes

• House

What does CPA stand for?

• Certified Paper Accounting

• Certified Professional Accountant

• Certified Private Accountant

• Certified Public Accountant

What is the entry for a NSF Check?

• Debit: Accounts Receivable

  Credit: Cash

• Debit: Cash

  Credit: Accounts Payable

• Debit: Bank Charge Expense

  Credit: Cash

• Debit: Cash

  Credit: Accounts Receivable