BCS 2A

An employee misappropriates cash receipts from sales on account. Which of the following acts would conceal this defalcation and be least likely to be detected by an auditor?

• A. Understating the cash receipts journal.

• Overstating the accounts receivable subsidiary ledger.

• Overstating the accounts receivable control account.

• .Understating the sales journal.

1. Which of the following is a source document that would be found  in the expenditure cycle?

• Journal voucher

• Purchase order

• .Time card

• Delivery receipt

1. Which of the following is probably the most effective control for the prevention of kickbacks to purchasing agents?

• Review of vendor performance

• A corporate policy to prohibit purchasing agents from accepting kickbacks.

• Purchasing from approved vendors.

• Good supervision in the purchasing area.

1. The easiest way to prevent the acceptance of unordered goods is to

• Always require that a valid purchase order exists before goods can be accepted at the time of delivery.

• .Order only from approved vendors.

• Have an appropriate conflict of interest policy in place.

• Require receiving department personnel to call the vendor before accepting any goods.

Which of the following is not an objective of the revenue/receipt cycle?

• Received goods are counted and inspected for quality.

• Custody over assets resulting from the revenue/receipt cycle is properly maintained.

• Transactions related to the revenue/receipt cycle are properly authorized, executed, and recorded.

• Approved sales orders are shipped on a timely basis and in accordance with customer specifications.

This is the set of formal procedures by which data are collected, processed  into information, and distributed to users

• information system

• Information generation

• Horizontal flow

• financial transactions

is an economic event that affects the assets and equities of the  organization, is reflected in its accounts, and is measured in monetary terms.

• financial transaction

• turn around documents

• non financial transaction

• management transactions

Are product documents of one system that become source documents for another system.

• Turn around documents

• _special journal

• management reporting system

• Internal financial transactionb

provides internal management  with special-purpose financial reports and information needed for decision making.

• management reporting system

• Management financial statement

• Tax rules

• Code of ethics

is the first operational stage in the information system.

• data collection

• database management

• information generation

• feedback