ACCT 201A iClicker Questions and
Answers
a section of the cash flow statement that shows the cash generated or spent relating to investment
activities. Investing activities include purchases of physical assets, investments in securities, or
the sale of securities or assets.
operating cash flows would include which of the following:
a. repayment of borrowed money
b. repayment of employment salaries
c. services to customers provided on account
d. purchases of a delivery vehicle Correct Ans-b. repayment of employment salaries
explanation:
operating activity: on account because no cash has been transferred yet.
common types of financial statement fraud include creating fictitious revenues from a fake
customer, improperly valuing assets, and mismatching revenues and expenses
a. true
b. false Correct Ans-a. true
,in response to corporate accounting scandals and to public outrage over seemingly widespread
unethical behavior of top executives, Congress passed the Sarbanes-Oxley Act
a. true
b. false Correct Ans-a. true
auditors of public companies can perform the full range of audit and non-audit consulting
services for their audit clients
a. true
b. false Correct Ans-b. false
internal control is a company's plan to (1) improve the accuracy and reliability of accounting
information and (2) safeguard the company's assets
a. true
b. false Correct Ans-a. true
separation of duties refers to auditors not being allowed to perform both audit and non-audit
services for the same client
a. true
b. false Correct Ans-b. false
, the amount of cash reported in a company's balance sheet includes currency, coins, and balances
in savings and checking accounts, as well as items acceptable for deposit in these accounts, such
as checks received form customers
a. true
b. false Correct Ans-a. true
allowing the employee who authorizes purchases to also prepare the check is an example of good
internal control.
a. true
b. false Correct Ans-b. false
a bank reconciliation matches the balance of cash in the bank account with the balance of cash in
the company's own records
a. true
b. false Correct Ans-a. true
a deposit outstanding will cause the bank's cash balance to be higher than the company's cash
balance
a. true
Answers
a section of the cash flow statement that shows the cash generated or spent relating to investment
activities. Investing activities include purchases of physical assets, investments in securities, or
the sale of securities or assets.
operating cash flows would include which of the following:
a. repayment of borrowed money
b. repayment of employment salaries
c. services to customers provided on account
d. purchases of a delivery vehicle Correct Ans-b. repayment of employment salaries
explanation:
operating activity: on account because no cash has been transferred yet.
common types of financial statement fraud include creating fictitious revenues from a fake
customer, improperly valuing assets, and mismatching revenues and expenses
a. true
b. false Correct Ans-a. true
,in response to corporate accounting scandals and to public outrage over seemingly widespread
unethical behavior of top executives, Congress passed the Sarbanes-Oxley Act
a. true
b. false Correct Ans-a. true
auditors of public companies can perform the full range of audit and non-audit consulting
services for their audit clients
a. true
b. false Correct Ans-b. false
internal control is a company's plan to (1) improve the accuracy and reliability of accounting
information and (2) safeguard the company's assets
a. true
b. false Correct Ans-a. true
separation of duties refers to auditors not being allowed to perform both audit and non-audit
services for the same client
a. true
b. false Correct Ans-b. false
, the amount of cash reported in a company's balance sheet includes currency, coins, and balances
in savings and checking accounts, as well as items acceptable for deposit in these accounts, such
as checks received form customers
a. true
b. false Correct Ans-a. true
allowing the employee who authorizes purchases to also prepare the check is an example of good
internal control.
a. true
b. false Correct Ans-b. false
a bank reconciliation matches the balance of cash in the bank account with the balance of cash in
the company's own records
a. true
b. false Correct Ans-a. true
a deposit outstanding will cause the bank's cash balance to be higher than the company's cash
balance
a. true
