MBA 510 LATEST EXAMS TEST PAPER QUESTIONS
AND ANSWERS SURE A+
✔✔True or false: separation of recordkeeping for assets from the custody over assets
helps reduce fraud - ✔✔True
✔✔The _________ category includes currency, coins, and deposits in bank accounts -
✔✔CASH
✔✔True or False: good internal control is to have only one employee assigned the task
of opening mail - ✔✔FALSE
✔✔True or false: A petty cash system of control is a system only used for cash receipts
- ✔✔FALSE ??? but why ***
✔✔True or false: good internal control for cash is to require all cash payments be made
by check. An exception is small payments made from petty cash. - ✔✔TRUE
✔✔Auditors focus more on testing the ____ of a company's blockchain processes and
technology than on verifying the ___ of its output. - ✔✔effectiveness
accuracy
, ✔✔Can occur from carelessness, misjudgement, or confusion - ✔✔human error
✔✔Involves intent by people to defeat internal controls for personal gain - ✔✔Human
fraud
✔✔dictates that the costs of internal controls must not exceed their benefits - ✔✔cost-
benefit principle
✔✔management must convey commitment to internal control policies and procedures -
✔✔internal control environment
✔✔Blockchain makes it _________________ difficult for the ledger to be modified
without a detailed record of changes - ✔✔more difficult
✔✔Block chain is simultaneously and continuously ___________ and _________ -
✔✔updated and verified
✔✔Good internal control to protect cash is to make cash payments using - ✔✔CHECKS
✔✔Why are liquid assets needed in a business? - ✔✔liquid assets must be available to
pay current liabilities
✔✔Lists currency, coins, and checks deposited into an account - ✔✔deposit ticket
✔✔document signed by the depositor instructing the bank to pay a specified amount of
money - ✔✔check
✔✔used to deposit money for safekeeping and help control withdrawals - ✔✔bank
account
✔✔explains reason for payment - ✔✔remittance advice (optional)
✔✔electronic transfer of cash from one party to another - ✔✔electronic funds transfer
(EFT)
✔✔The information on the bank statement reflects the _________'s records of the
depositor's account - ✔✔bank
✔✔Promissory note received from a customer in exchange for an account receivable is
recorded by the PAYEE as - ✔✔note receivable
AND ANSWERS SURE A+
✔✔True or false: separation of recordkeeping for assets from the custody over assets
helps reduce fraud - ✔✔True
✔✔The _________ category includes currency, coins, and deposits in bank accounts -
✔✔CASH
✔✔True or False: good internal control is to have only one employee assigned the task
of opening mail - ✔✔FALSE
✔✔True or false: A petty cash system of control is a system only used for cash receipts
- ✔✔FALSE ??? but why ***
✔✔True or false: good internal control for cash is to require all cash payments be made
by check. An exception is small payments made from petty cash. - ✔✔TRUE
✔✔Auditors focus more on testing the ____ of a company's blockchain processes and
technology than on verifying the ___ of its output. - ✔✔effectiveness
accuracy
, ✔✔Can occur from carelessness, misjudgement, or confusion - ✔✔human error
✔✔Involves intent by people to defeat internal controls for personal gain - ✔✔Human
fraud
✔✔dictates that the costs of internal controls must not exceed their benefits - ✔✔cost-
benefit principle
✔✔management must convey commitment to internal control policies and procedures -
✔✔internal control environment
✔✔Blockchain makes it _________________ difficult for the ledger to be modified
without a detailed record of changes - ✔✔more difficult
✔✔Block chain is simultaneously and continuously ___________ and _________ -
✔✔updated and verified
✔✔Good internal control to protect cash is to make cash payments using - ✔✔CHECKS
✔✔Why are liquid assets needed in a business? - ✔✔liquid assets must be available to
pay current liabilities
✔✔Lists currency, coins, and checks deposited into an account - ✔✔deposit ticket
✔✔document signed by the depositor instructing the bank to pay a specified amount of
money - ✔✔check
✔✔used to deposit money for safekeeping and help control withdrawals - ✔✔bank
account
✔✔explains reason for payment - ✔✔remittance advice (optional)
✔✔electronic transfer of cash from one party to another - ✔✔electronic funds transfer
(EFT)
✔✔The information on the bank statement reflects the _________'s records of the
depositor's account - ✔✔bank
✔✔Promissory note received from a customer in exchange for an account receivable is
recorded by the PAYEE as - ✔✔note receivable
