Accounting 2036 Mizzou Exam Two
Questions With 100% Correct Answers
2025-2026 Update.
Auditing is an example of which principle of control activities? - Answer Independently
verifies
Which factor of the Fraud Triangle stems from weak internal controls? - Answer Opportunity
When are payments out of petty cash recorded in the accounting system? - Answer When
the fund is replenished
A situation where a fraudster (one who commits fraud) perceives a misdeed as unavoidable or
justified is an example of which factor of the fraud triangle? - Answer Rationalization
What does SOX stand for? - Answer Sarbanes Oxley Act
Which of the following is NOT a step of a bank reconciliation? - Answer Identify petty cash
payments
Which of the following is an example of segregation of duties? - Answer Inventory buyers do
not also approve payments to suppliers
Which of the following is NOT an element of the fraud triangle? - Answer Internal Controls
Which of the following is NOT a bank reconciliation goal? - Answer Ensure there are no bank
fees
Which of the following is NOT one of the five principles of internal control? - Answer
Monitor activities
What type of system is used to reimburse employees for small payments? - Answer Petty
Cash
, Which type of internal control objective focuses on adhering to laws and regulations? - Answer
Compliance
Which of the following is an internal report prepared to verify the accuracy of both the bank
statement and the cash accounts of a business or individual? - Answer Bank reconciliation
Which of the following is NOT part of the fraud triangle? - Answer Dishonesty
Which internal control activity involves preventing an employee from making a mistake or
committing a dishonest act and then having the ability to cover it up? - Answer Segregation
of duties
Fidget Spinners, Inc., is a merchandising retail company that sells fidget spinners. Which of the
following items is an example of the company's inventory? - Answer Fidget Spinners that are
sold to customers
Which of the following best describes gross profit percentage? - Answer Percentage of profit
earned on each dollar of sales
Which of the following is the best example of a service company? - Answer Great Clips Hair
Salon
If I am buying goods FOB shipping point, when do I gain ownership of the goods? - Answer
When the goods leave the seller's premises
What does this term mean: "2/10, n/30"? - Answer If the buyer pays within 10 days, it
receives a 2% discount
If a cat salesman sells one cat for $100, with terms of 2/10, n/30, what would be the proper
journal entry for the cat salesman to record the receipt of cash? Assume the sale took place the
day before on account. - Answer Debit to Cash for $98; debit to Sales Discount $2; credit to
Accounts Receivable $100
Which of the following is NOT part of a merchandising company's operating cycle? - Answer
Sell services
Questions With 100% Correct Answers
2025-2026 Update.
Auditing is an example of which principle of control activities? - Answer Independently
verifies
Which factor of the Fraud Triangle stems from weak internal controls? - Answer Opportunity
When are payments out of petty cash recorded in the accounting system? - Answer When
the fund is replenished
A situation where a fraudster (one who commits fraud) perceives a misdeed as unavoidable or
justified is an example of which factor of the fraud triangle? - Answer Rationalization
What does SOX stand for? - Answer Sarbanes Oxley Act
Which of the following is NOT a step of a bank reconciliation? - Answer Identify petty cash
payments
Which of the following is an example of segregation of duties? - Answer Inventory buyers do
not also approve payments to suppliers
Which of the following is NOT an element of the fraud triangle? - Answer Internal Controls
Which of the following is NOT a bank reconciliation goal? - Answer Ensure there are no bank
fees
Which of the following is NOT one of the five principles of internal control? - Answer
Monitor activities
What type of system is used to reimburse employees for small payments? - Answer Petty
Cash
, Which type of internal control objective focuses on adhering to laws and regulations? - Answer
Compliance
Which of the following is an internal report prepared to verify the accuracy of both the bank
statement and the cash accounts of a business or individual? - Answer Bank reconciliation
Which of the following is NOT part of the fraud triangle? - Answer Dishonesty
Which internal control activity involves preventing an employee from making a mistake or
committing a dishonest act and then having the ability to cover it up? - Answer Segregation
of duties
Fidget Spinners, Inc., is a merchandising retail company that sells fidget spinners. Which of the
following items is an example of the company's inventory? - Answer Fidget Spinners that are
sold to customers
Which of the following best describes gross profit percentage? - Answer Percentage of profit
earned on each dollar of sales
Which of the following is the best example of a service company? - Answer Great Clips Hair
Salon
If I am buying goods FOB shipping point, when do I gain ownership of the goods? - Answer
When the goods leave the seller's premises
What does this term mean: "2/10, n/30"? - Answer If the buyer pays within 10 days, it
receives a 2% discount
If a cat salesman sells one cat for $100, with terms of 2/10, n/30, what would be the proper
journal entry for the cat salesman to record the receipt of cash? Assume the sale took place the
day before on account. - Answer Debit to Cash for $98; debit to Sales Discount $2; credit to
Accounts Receivable $100
Which of the following is NOT part of a merchandising company's operating cycle? - Answer
Sell services
