Question 1 0.5 out of 0.

5 points
The most serious limitation of internal control is Answer Human fraud or Sele human error.
cted Answer: Corr ect Answer:

Human fraud or human error.

Question 2 0.5 out of 0.5 points

Activities that involve the production or purchase of merchandise and the goods and services to customers, including expenditures related to administerin business, are classified as: Answer
Sele cted Answer: Corr ect Answer:

Operating activities Operating activities

Question 3 0.5 out of 0.5 points

The entry to record reimbursement of the petty cash fund for postage expense should include: Answer A debit to Sele Postage Expense.
cted Answer: Corr ect Answer:

A debit to Postage Expense.

Question 4 0.5 out of 0.5 points

A company issued 7% preferred stock with a $100 par value. This means that: Answer The amount of the potential dividend is $7 per ye Sele preferred share
cted

Answer: Corr ect Answer:

The amount of the potential dividend is $7 per ye preferred share

Question 5 0 out of 0.5 points

Wilma Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2011 fiscal year was $634,000. Depreciation and amortization expense of $60,000 and 30,000 respectively were included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Determine the net cash flow provided (used) by operating activities. Answer
Sele cted Answer:

($536 ,300)

Corr ect Answer:

$723, 700

Question 6 0 out of 0.5 points

A company had wage expense of $750,000 during a given period. Compu wages during this period given the following data. Answer
Sele cted Answer:

$74, 500

Corr ect Answer:

$82

4,50 0

Question 7 0.5 out of 0.5 points

Stockholders' equity consists of: Answer Contributed capital and Sele retained earnings
cted Answer: Corr ect Answer:

Contributed capital and retained earnings

Question 8 0.5 out of 0.5 points

The entry necessary to establish a petty cash fund should include: Answer A debit to Petty Cash and a Sele credit to Cash.
cted Answer: Corr ect Answer:

A debit to Petty Cash and a credit to Cash.

Question 9 0.5 out of 0.5 points

Cash flows from interest received are reported in the statement of cash flows as part of: Answer
Sele cted Answer: Corr ect Answer:

Operating activities Operating activities

Question 10 0.5 out of 0.5 points

: Answer

An internal control system consists of the policies and procedures manag

All
Sele cted Answer: Corr ect Answer:

of the above. All of the above.

Question 11 0.5 out of 0.5 points

The total amount of cash and other assets received by a corporation from its stockholders in exchange for common stock is: Answer Referred to as Sele contributed capital
cted Answer: Corr ect Answer:

Referred to as contributed capital

Question 12 0 out of 0.5 points

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the: Answer Investing activities
Sele cted Answer: Corr ect Answer:

Schedule of noncash financing and investing activities

Question 13 0.5 out of 0.5 points

A good system of internal control: Answer Urges adherence to prescribed Sele managerial policies.
cted Answer: Corr ect Answer:

Urges adherence to prescribed managerial policies.

Question 14 0.5 out of 0.5 points

A class of stock that does not have a par value and can usually be issued without creating a minimum legal capital deficiency is called: Answer
Sele cted Answer: Corr ect Answer:

No-par stock No-par stock

Question 15 0.5 out of 0.5 points

A machine with a cost of $130,000 and accumulated depreciation of $85, $50,000 cash. The amount that should be reported as a source of cash under c investing activities is: Answer
Sele cted Answer:

$5 0, 00 0

Corr ect Answer:

$5 0, 00 0

Question 16 0.5 out of 0.5 points

The Cash Over and Short account: Answer Is an income statement account used for recording the income cash shortages from errors in making change and from missing petty c
S el ec te d A

ns w er :

Is an income statement account used for recording the income cash shortages from errors in making change and from missing petty c
C or re ct A ns w er :

Question 17 0.5 out of 0.5 points

On a bank reconciliation, the amount of an unrecorded bank service charge should be: Answer Deducted from the book Sele balance of cash.
cted Answer: Corr ect Answer:

Deducted from the book balance of cash.

Question 18 0.5 out of 0.5 points

Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include: Answer A credit to Cash Sele for $387.50.
cted Answer: Corr ect Answer:

A credit to Cash for $387.50.

Question 19 0.5 out of 0.5 points

Par value of a stock refers to the: Answer Value assigned to a share of stock by the Sele corporate charter
cted Answer: Corr ect Answer:

Value assigned to a share of stock by the corporate charter

Question 20 0.5 out of 0.5 points

A company made a bank deposit on September 30 that did not appear on the bank statement dated as of September 30. In preparing the September 30 bank reconciliation, the company should: Answer Add the deposit to the bank statement Sele balance.
cted Answer: Corr ect Answer:

Add the deposit to the bank statement balance.