TEST #4 WITH ALL CORRECT ANSWERS
Question 1
pts
The Sarbanes-Oxley Act of 2002 applies only to small businesses with less than 100
employees.
Correct!
False.
True.
Question 2
pts
Systems of internal control are the methods an organization uses to protect against theft
of assets, enhance reliable accounting information, promote efficient operations, and
ensure compliance with regulations.
Correct!
True.
False.
Question 3
pts
Outstanding checks are checks the bank has paid and deducted from the customer’s
account during the month.
True.
Correct!
False.
,Question 4
pts
Deposits in transit are deposits made and recorded by the company but not yet
recorded on the bank statement.
False.
Correct!
True.
Question 5
pts
Accounts receivable are classified as current assets since they will always be paid
within 30 days.
True.
Correct!
False.
Question 6
pts
Accounts receivable result from credit sales to customers.
Correct!
True.
False.
, Question 7
pts
The Allowance for Doubtful accounts is a contra asset account.
False.
Correct!
True.
Question 8
pts
The longer an accounts receivable remains unpaid, the more likely it is to be collected.
True.
Correct!
False.
Question 9
pts
A company borrowed $5,000 by signing a three month note receivable at 8% interest.
The total amount of interest on the note is $100.
You Answered
True.
Correct Answer
False.
Question 10
pts
Question 1
pts
The Sarbanes-Oxley Act of 2002 applies only to small businesses with less than 100
employees.
Correct!
False.
True.
Question 2
pts
Systems of internal control are the methods an organization uses to protect against theft
of assets, enhance reliable accounting information, promote efficient operations, and
ensure compliance with regulations.
Correct!
True.
False.
Question 3
pts
Outstanding checks are checks the bank has paid and deducted from the customer’s
account during the month.
True.
Correct!
False.
,Question 4
pts
Deposits in transit are deposits made and recorded by the company but not yet
recorded on the bank statement.
False.
Correct!
True.
Question 5
pts
Accounts receivable are classified as current assets since they will always be paid
within 30 days.
True.
Correct!
False.
Question 6
pts
Accounts receivable result from credit sales to customers.
Correct!
True.
False.
, Question 7
pts
The Allowance for Doubtful accounts is a contra asset account.
False.
Correct!
True.
Question 8
pts
The longer an accounts receivable remains unpaid, the more likely it is to be collected.
True.
Correct!
False.
Question 9
pts
A company borrowed $5,000 by signing a three month note receivable at 8% interest.
The total amount of interest on the note is $100.
You Answered
True.
Correct Answer
False.
Question 10
pts
