Financial and Managerial Accounting
Chapter 6 Exam Questions and
Answers 100% Pass
What is the purpose of internal controls?
Multiple choice question.
Internal controls are used by managers as a way to reduce outstanding customer
balances.
Managers utilize internal controls as a basis of employee performance reviews.
To help managers know if the business is receiving the assets and services it has
paid for.
Companies use strong internal controls to guarantee that loss is eliminated. -
CORRECT ANSWER:-To help managers know if the business is receiving the
assets and services it has paid for.
Which of the following are correct regarding why management uses internal
controls? (Check all that apply.)
promote efficient operations.
,increase revenues.
reduce vendor payables.
protect assets.
ensure reliable accounting.
uphold company policies. - CORRECT ANSWER:-promote efficient operations.
protect assets.
ensure reliable accounting.
uphold company policies.
Which of the following are principles of internal control? (Check all that apply.)
Multiple select question.
Increase revenues.
Maintain adequate records.
Reduce vendor payables.
Establish responsibilities.
Perform regular and independent reviews.
Divide responsibility for related transactions. - CORRECT ANSWER:-Divide
responsibility for related transactions.
Establish responsibilities.
, Maintain adequate records.
Perform regular and independent review
Summarize the internal control principle of establishing responsibility by
completing the following sentence. Proper internal control means that
responsibility for a (task/shortage/sale) is clearly
(posted/established/compensated) and assigned to one person. - CORRECT
ANSWER:-Task
Established
True or false: An owner of a small business usually knows if the business is
receiving the assets and services the company paid for.
True or False - CORRECT ANSWER:-True
What is the purpose of internal controls?
Multiple choice question.
as a basis of employee performance reviews
to reduce outstanding customer balances
to guarantee that loss is eliminated
to protect assets and ensure reliable accounting - CORRECT ANSWER:-To
protect assets and ensure reliable accounting
Chapter 6 Exam Questions and
Answers 100% Pass
What is the purpose of internal controls?
Multiple choice question.
Internal controls are used by managers as a way to reduce outstanding customer
balances.
Managers utilize internal controls as a basis of employee performance reviews.
To help managers know if the business is receiving the assets and services it has
paid for.
Companies use strong internal controls to guarantee that loss is eliminated. -
CORRECT ANSWER:-To help managers know if the business is receiving the
assets and services it has paid for.
Which of the following are correct regarding why management uses internal
controls? (Check all that apply.)
promote efficient operations.
,increase revenues.
reduce vendor payables.
protect assets.
ensure reliable accounting.
uphold company policies. - CORRECT ANSWER:-promote efficient operations.
protect assets.
ensure reliable accounting.
uphold company policies.
Which of the following are principles of internal control? (Check all that apply.)
Multiple select question.
Increase revenues.
Maintain adequate records.
Reduce vendor payables.
Establish responsibilities.
Perform regular and independent reviews.
Divide responsibility for related transactions. - CORRECT ANSWER:-Divide
responsibility for related transactions.
Establish responsibilities.
, Maintain adequate records.
Perform regular and independent review
Summarize the internal control principle of establishing responsibility by
completing the following sentence. Proper internal control means that
responsibility for a (task/shortage/sale) is clearly
(posted/established/compensated) and assigned to one person. - CORRECT
ANSWER:-Task
Established
True or false: An owner of a small business usually knows if the business is
receiving the assets and services the company paid for.
True or False - CORRECT ANSWER:-True
What is the purpose of internal controls?
Multiple choice question.
as a basis of employee performance reviews
to reduce outstanding customer balances
to guarantee that loss is eliminated
to protect assets and ensure reliable accounting - CORRECT ANSWER:-To
protect assets and ensure reliable accounting
