CBAD 201 - Chapter 4 questions with
100% correct answers rated A+
The two most common types of fraud impacting financial statements are misappropriation of assets and
fraudulent financial reporting. - correct answer ✔✔True
Which of the following terms is not part of the fraud triangle? - correct answer ✔✔Conspiracy
The primary way that fraud is detected, prevented, or corrected is through a proper system of internal
control. - correct answer ✔✔True
Which of the following items is not an objective of an internal control system? (Select all that apply.) -
correct answer ✔✔Ensure maximum profitability
Payments by check or EFT represent an important internal control. - correct answer ✔✔True
When a company receives customers' checks by mail: - correct answer ✔✔all incoming mail containing
checks from customers should be opened by the mailroom.
How are outstanding checks handled in a bank reconciliation? - correct answer ✔✔Deducted from the
bank balance
How is interest revenue handled in a bank reconciliation? - correct answer ✔✔Added to the book
balance
After changing the amount of a legitimate business expense receipt from $70 to $90, Sidney Block
submits the receipt for reimbursement from her company. This situation is an example of a(n) - correct
answer ✔✔overstated expense
100% correct answers rated A+
The two most common types of fraud impacting financial statements are misappropriation of assets and
fraudulent financial reporting. - correct answer ✔✔True
Which of the following terms is not part of the fraud triangle? - correct answer ✔✔Conspiracy
The primary way that fraud is detected, prevented, or corrected is through a proper system of internal
control. - correct answer ✔✔True
Which of the following items is not an objective of an internal control system? (Select all that apply.) -
correct answer ✔✔Ensure maximum profitability
Payments by check or EFT represent an important internal control. - correct answer ✔✔True
When a company receives customers' checks by mail: - correct answer ✔✔all incoming mail containing
checks from customers should be opened by the mailroom.
How are outstanding checks handled in a bank reconciliation? - correct answer ✔✔Deducted from the
bank balance
How is interest revenue handled in a bank reconciliation? - correct answer ✔✔Added to the book
balance
After changing the amount of a legitimate business expense receipt from $70 to $90, Sidney Block
submits the receipt for reimbursement from her company. This situation is an example of a(n) - correct
answer ✔✔overstated expense
