Accounting 231 - KSU Exam 1
Question and answers verified to pass
2025/2026
Examples of fraud - correct answer ✔making up revenues, making up expenses, shifting revenues,
embezzlement,
2 groups of users of the financial statements - correct answer ✔internal and external
what fraud cannot be detected on the bank reconciliation? - correct answer ✔all that we learned
what documents are used to record a sale, terms of shipping, request payments for sale? - correct
answer ✔sales invoice, sales order, bill of lading
3 duties that need to be separated - correct answer ✔authorization, recording, custody
Sarbanes-Oxley Act - correct answer ✔government put in place to prevent fraud
Accounting tricks - correct answer ✔Fabricating Revenue, Shifting Revenue, Pushing expenses off into
the future
Fraud triangle= - correct answer ✔Pressure + Opportunity + Rationalization
Red Flags when looking at personnel: - correct answer ✔- Gambling Activity
- Reworking records
- Receiving "gifts" from suppliers
, - Skipping vacation, working excessive
- Large personal purchases such as new cars
- Avoiding promotion opportunities
Red Flags when looking at management: - correct answer ✔- Pressure to meet earnings expectations
- Decisions are dominated by one person
- Poor Reputation
- aggressive attitude
Outstanding Check (O/S) - correct answer ✔Checks that do not appear on bank stmt.... subtract from
bank on reconciliation
Deposit In-Transit (DIT) - correct answer ✔Deposits recorded by the company but not yet recorded by
its bank.... add to bank on reconciliation
Service Charge - correct answer ✔Amount paid to the bank for there services
NSF - correct answer ✔Non-Sufficient Funds
ex. bounced check
Bounced Check - correct answer ✔a check written to you by a company that is for an amount that the
company does not have.
What qualities are related to financial information being useful for decisions - correct answer
✔Relevance, Reliability
What type of business form has Unlimited number of owners - correct answer ✔Public Corporation
Question and answers verified to pass
2025/2026
Examples of fraud - correct answer ✔making up revenues, making up expenses, shifting revenues,
embezzlement,
2 groups of users of the financial statements - correct answer ✔internal and external
what fraud cannot be detected on the bank reconciliation? - correct answer ✔all that we learned
what documents are used to record a sale, terms of shipping, request payments for sale? - correct
answer ✔sales invoice, sales order, bill of lading
3 duties that need to be separated - correct answer ✔authorization, recording, custody
Sarbanes-Oxley Act - correct answer ✔government put in place to prevent fraud
Accounting tricks - correct answer ✔Fabricating Revenue, Shifting Revenue, Pushing expenses off into
the future
Fraud triangle= - correct answer ✔Pressure + Opportunity + Rationalization
Red Flags when looking at personnel: - correct answer ✔- Gambling Activity
- Reworking records
- Receiving "gifts" from suppliers
, - Skipping vacation, working excessive
- Large personal purchases such as new cars
- Avoiding promotion opportunities
Red Flags when looking at management: - correct answer ✔- Pressure to meet earnings expectations
- Decisions are dominated by one person
- Poor Reputation
- aggressive attitude
Outstanding Check (O/S) - correct answer ✔Checks that do not appear on bank stmt.... subtract from
bank on reconciliation
Deposit In-Transit (DIT) - correct answer ✔Deposits recorded by the company but not yet recorded by
its bank.... add to bank on reconciliation
Service Charge - correct answer ✔Amount paid to the bank for there services
NSF - correct answer ✔Non-Sufficient Funds
ex. bounced check
Bounced Check - correct answer ✔a check written to you by a company that is for an amount that the
company does not have.
What qualities are related to financial information being useful for decisions - correct answer
✔Relevance, Reliability
What type of business form has Unlimited number of owners - correct answer ✔Public Corporation
