Accounting Unit 6 Quiz Cash Fraud & Int Ctrl

What term is used to describe the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement?

• Bank reconciliation

• Blockchain

• Invoice approval

• Petty cash

Which term refers to a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly?

• Bank statement

• Blockchain

• Cash equivalents

• Deposit ticket

What is the term for checks that have been issued by a company but not yet cleared by the bank?

• Outstanding checks

• Canceled checks

• Cash Over and Short

• Check register

Which term describes the minimal amount of cash that a company keeps on hand to make small payments?

• Petty cash

• Cash equivalents

• Liquid assets

• Liquidity

What is the name of the framework developed to help organizations design and implement internal control systems?

• Principles of internal control

• Committee of Sponsoring Organizations (COSO)

• Internal control system

• Fraud triangle

What is the purpose of the Sarbanes-Oxley Act (SOX)?

• To regulate financial reporting and auditing of public companies to prevent fraud.

• To increase the tax rates for large corporations.

• To deregulate stock markets.

• To promote international trade agreements.

Which document is used to verify that goods have been received?

• Voucher

• Vendor

• Receiving report

• Signature card

What is a 'Voucher system' primarily used for in business?

• Tracking employee attendance

• Managing customer complaints

• Controlling and recording transactions

• Advertising new products

What is the purpose of a report that identifies cash differences between the company records and the bank's records?

• To record cash errors arising from cash receipts or payments

• To identify discrepancies and ensure accuracy between recorded amounts

• To authorize the vendor to ship ordered merchandise

• To notify the purchasing department of needs

What are the criteria for an asset to be considered a short-term, highly liquid investment?

• Convertible to a known cash amount and not sensitive to interest rate changes

• Convertible to a known cash amount and sensitive to interest rate changes

• Not convertible to a known cash amount and not sensitive to interest rate changes

• Convertible to a known cash amount and not sensitive to interest rate changes (close to due date)