ACC 201 UPDATED Exam Questions and
CORRECT Answers
E. All of these. - CORRECT ANSWER -80. An internal control system consists of the
policies and procedures managers use to:
A. Protect assets.
B. Ensure reliable accounting.
C. Promote efficient operations.
D. Urge adherence to company policies.
E. All of these.
E. All of these. - CORRECT ANSWER -81. Managers place a high priority on internal
control systems because the systems assist managers in the:
A. Prevention of avoidable losses.
B. Planning of operations.
C. Monitoring of company performance.
D. Monitoring of employee performance.
E. All of these.
A. Establish responsibilities. - CORRECT ANSWER -82. The principles of internal
control include:
A. Establish responsibilities.
B. Maintain minimal records.
C. Use only computerized systems.
D. Bond all employees.
E. Require automated sales systems
E. All of these. - CORRECT ANSWER -83. Principles of internal control include:
A. Apply technological controls.
,B. Divide responsibilities for related transactions.
C. Perform regular and independent reviews.
D. Separate recordkeeping from custody of assets.
E. All of these.
A. Lowers the company's risk of loss - CORRECT ANSWER -84. A properly designed
internal control system:
A. Lowers the company's risk of loss.
B. Insures profitable operations.
C. Eliminates the need for an audit.
D. Requires the use of non-computerized systems.
E. Is not necessary if the company uses a computerized system.
B. Monitors company and employee performance. - CORRECT ANSWER -85. A
company's internal control system:
A. Eliminates the company's risk of loss.
B. Monitors company and employee performance.
C. Eliminates human error.
D. Eliminates the need for audits.
E. All of these.
A. Establish responsibilities. - CORRECT ANSWER -86. When two clerks share the same
cash register it is a violation of which internal control principle?
A. Establish responsibilities.
B. Maintain adequate records.
C. Insure assets.
D. Bond key employees.
E. Apply technological controls.
, B. Maintain adequate records. - CORRECT ANSWER -87. Prenumbered printed checks
are an example of which internal control principle?
A. Technological controls.
B. Maintain adequate records.
C. Perform regular and independent reviews.
D. Establish responsibilities.
E. Divide responsibility for related transactions.
A. Reduced processing errors. - CORRECT ANSWER -88. The impact of technology on
internal controls includes:
A. Reduced processing errors.
B. Elimination of the need for regular audits.
C. Elimination of the need to bond employees.
D. Elimination of separation of duties.
E. Elimination of fraud.
E. All of these. - CORRECT ANSWER -89. Internal control policies and procedures have
limitations including:
A. Human error.
B. Human fraud.
C. Cost-benefit principle.
D. Collusion.
E. All of these.
D. Required by Sarbanes-Oxley (SOX) to be documented and certified if the company's stock is
traded on an exchange. - CORRECT ANSWER -90. Internal control systems are:
A. Developed by the Securities and Exchange Commission for public companies.
B. Developed by the Small Business Administration for non-public companies.
C. Developed by the Internal Revenue Service for all U.S. companies.
CORRECT Answers
E. All of these. - CORRECT ANSWER -80. An internal control system consists of the
policies and procedures managers use to:
A. Protect assets.
B. Ensure reliable accounting.
C. Promote efficient operations.
D. Urge adherence to company policies.
E. All of these.
E. All of these. - CORRECT ANSWER -81. Managers place a high priority on internal
control systems because the systems assist managers in the:
A. Prevention of avoidable losses.
B. Planning of operations.
C. Monitoring of company performance.
D. Monitoring of employee performance.
E. All of these.
A. Establish responsibilities. - CORRECT ANSWER -82. The principles of internal
control include:
A. Establish responsibilities.
B. Maintain minimal records.
C. Use only computerized systems.
D. Bond all employees.
E. Require automated sales systems
E. All of these. - CORRECT ANSWER -83. Principles of internal control include:
A. Apply technological controls.
,B. Divide responsibilities for related transactions.
C. Perform regular and independent reviews.
D. Separate recordkeeping from custody of assets.
E. All of these.
A. Lowers the company's risk of loss - CORRECT ANSWER -84. A properly designed
internal control system:
A. Lowers the company's risk of loss.
B. Insures profitable operations.
C. Eliminates the need for an audit.
D. Requires the use of non-computerized systems.
E. Is not necessary if the company uses a computerized system.
B. Monitors company and employee performance. - CORRECT ANSWER -85. A
company's internal control system:
A. Eliminates the company's risk of loss.
B. Monitors company and employee performance.
C. Eliminates human error.
D. Eliminates the need for audits.
E. All of these.
A. Establish responsibilities. - CORRECT ANSWER -86. When two clerks share the same
cash register it is a violation of which internal control principle?
A. Establish responsibilities.
B. Maintain adequate records.
C. Insure assets.
D. Bond key employees.
E. Apply technological controls.
, B. Maintain adequate records. - CORRECT ANSWER -87. Prenumbered printed checks
are an example of which internal control principle?
A. Technological controls.
B. Maintain adequate records.
C. Perform regular and independent reviews.
D. Establish responsibilities.
E. Divide responsibility for related transactions.
A. Reduced processing errors. - CORRECT ANSWER -88. The impact of technology on
internal controls includes:
A. Reduced processing errors.
B. Elimination of the need for regular audits.
C. Elimination of the need to bond employees.
D. Elimination of separation of duties.
E. Elimination of fraud.
E. All of these. - CORRECT ANSWER -89. Internal control policies and procedures have
limitations including:
A. Human error.
B. Human fraud.
C. Cost-benefit principle.
D. Collusion.
E. All of these.
D. Required by Sarbanes-Oxley (SOX) to be documented and certified if the company's stock is
traded on an exchange. - CORRECT ANSWER -90. Internal control systems are:
A. Developed by the Securities and Exchange Commission for public companies.
B. Developed by the Small Business Administration for non-public companies.
C. Developed by the Internal Revenue Service for all U.S. companies.
