MBA 510 EVALUATION ALL TEST QUESTIONS
AND ANSWERS SURE A+
✔✔Product costs are expensed as - ✔✔cost of goods sold when product is sold
✔✔manufacturing costs, other than direct materials and direct labor, that cannot be
cost-effectively traced to finished goods - ✔✔indirect labor
✔✔what account appears only in a manufacturing company's financial statements? -
✔✔costs of goods manufactured
✔✔products that have been completed and are ready to be sold by the manufacturer -
✔✔finished goods inventory
✔✔the cost of workers who assist in, or supervise, the manufacturing process, not
linked to specific units of product - ✔✔indirect labor
✔✔ True or False: Cash equivalents consist of short-term and long-term investments -
✔✔FALSE
✔✔Two clerks sharing the same cash register is a violation of which internal control
principle? - ✔✔Establish responsibilities
, ✔✔Three parties involves with a check are - ✔✔1) maker
2) payee
3) bank (payer)
✔✔On a bank reconciliation, a bank fee for check printing not yet recorded by the
company is : - ✔✔deducted from the book of cash balance
✔✔Outstanding checks refer to checks that have been - ✔✔written by depositer,
subtracted on depositors books, and sent to payee, but not turned in for payment at the
bank statement date
✔✔Cash, not including cash equivalents, includes: - ✔✔customer checks, cashier
checks, and money orders
✔✔True or False: The primary objective of internal control procedures is to safeguard
the business against theft from government agencies - ✔✔FALSE
✔✔True or False: separating the responsibility for a transaction between two or more
individuals or depts will not help prevent someone from creating a fictitious invoice and
paying the money to himself - ✔✔FALSE
✔✔True or False: Separation of recordkeeping for assets from the custody over assets
does not prevent collusion between two or more employees to commit fraud - ✔✔TRUE
✔✔True or False: establishing responsibilities helps determine who is at fault for errors
or fraud - ✔✔TRUE
✔✔The _______ category includes items that are acceptable for deposit in bank
accounts such as customer checks, cashier's checks, and money orders - ✔✔CASH
✔✔The __________ category includes short-term, highly liquid investment assets that
are readily convertible to a known cash amount and sufficiently close to their due dates
so that their market value will not greatly change - ✔✔cash equivalents
✔✔Summarizes projected cash payments and cash receipts - ✔✔cash budget
✔✔True or False: Separation of duties eliminates the possibility of collusion to steal and
asset and hide theft from the records - ✔✔FALSE
✔✔True or false: A voucher system of control improves internal control of cash
payments - ✔✔True
AND ANSWERS SURE A+
✔✔Product costs are expensed as - ✔✔cost of goods sold when product is sold
✔✔manufacturing costs, other than direct materials and direct labor, that cannot be
cost-effectively traced to finished goods - ✔✔indirect labor
✔✔what account appears only in a manufacturing company's financial statements? -
✔✔costs of goods manufactured
✔✔products that have been completed and are ready to be sold by the manufacturer -
✔✔finished goods inventory
✔✔the cost of workers who assist in, or supervise, the manufacturing process, not
linked to specific units of product - ✔✔indirect labor
✔✔ True or False: Cash equivalents consist of short-term and long-term investments -
✔✔FALSE
✔✔Two clerks sharing the same cash register is a violation of which internal control
principle? - ✔✔Establish responsibilities
, ✔✔Three parties involves with a check are - ✔✔1) maker
2) payee
3) bank (payer)
✔✔On a bank reconciliation, a bank fee for check printing not yet recorded by the
company is : - ✔✔deducted from the book of cash balance
✔✔Outstanding checks refer to checks that have been - ✔✔written by depositer,
subtracted on depositors books, and sent to payee, but not turned in for payment at the
bank statement date
✔✔Cash, not including cash equivalents, includes: - ✔✔customer checks, cashier
checks, and money orders
✔✔True or False: The primary objective of internal control procedures is to safeguard
the business against theft from government agencies - ✔✔FALSE
✔✔True or False: separating the responsibility for a transaction between two or more
individuals or depts will not help prevent someone from creating a fictitious invoice and
paying the money to himself - ✔✔FALSE
✔✔True or False: Separation of recordkeeping for assets from the custody over assets
does not prevent collusion between two or more employees to commit fraud - ✔✔TRUE
✔✔True or False: establishing responsibilities helps determine who is at fault for errors
or fraud - ✔✔TRUE
✔✔The _______ category includes items that are acceptable for deposit in bank
accounts such as customer checks, cashier's checks, and money orders - ✔✔CASH
✔✔The __________ category includes short-term, highly liquid investment assets that
are readily convertible to a known cash amount and sufficiently close to their due dates
so that their market value will not greatly change - ✔✔cash equivalents
✔✔Summarizes projected cash payments and cash receipts - ✔✔cash budget
✔✔True or False: Separation of duties eliminates the possibility of collusion to steal and
asset and hide theft from the records - ✔✔FALSE
✔✔True or false: A voucher system of control improves internal control of cash
payments - ✔✔True
