MBA 510 UPDATED EXAMS SCRIPT QUESTIONS
AND ANSWERS SURE A+
✔✔The term _____ refers to company's ability to pay for its current liabilities -
✔✔liquidity
✔✔A _____ is a set of approvals and procedures used to control cash payments and
the acceptance of liabilities - ✔✔VOUCHER SYSTEM
✔✔True or false: a guideline for safeguarding cash is to separate the duties of those
who have custody of cash from those who keep cash records - ✔✔TRUE
✔✔True or false: to reduce theft, the salesclerk should not have access to the
accounting records for cash sales - ✔✔TRUE
✔✔True or False: a voucher system is a control system exclusively for cash receipts -
✔✔FALSE *** but why?
✔✔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
AND ANSWERS SURE A+
✔✔The term _____ refers to company's ability to pay for its current liabilities -
✔✔liquidity
✔✔A _____ is a set of approvals and procedures used to control cash payments and
the acceptance of liabilities - ✔✔VOUCHER SYSTEM
✔✔True or false: a guideline for safeguarding cash is to separate the duties of those
who have custody of cash from those who keep cash records - ✔✔TRUE
✔✔True or false: to reduce theft, the salesclerk should not have access to the
accounting records for cash sales - ✔✔TRUE
✔✔True or False: a voucher system is a control system exclusively for cash receipts -
✔✔FALSE *** but why?
✔✔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
