Bumble Beasley remarked: “The only way to be an accounting professional is to earn a
CPA license.” Which of the following statements is most true?
A. There are many ways to be an accounting professional.
B. All accounting professionals have degrees in accounting.
C. Both there are many ways to be an accounting professional and all accounting
professionals have degrees in accounting.
D. Neither there are many ways to be an accounting professional nor all accounting
professionals have degrees in accounting.
Debra and Dexter are CPAs specializing in tax planning and preparation. At a recent
professional event, Maria, a fellow CPA working for another firm, explained her belief
that cheating on taxes is always wrong. Which school of ethical thought does Maria
follow?
A. ethical egoism
B. utilitarianism
C. deontology
D. virtue ethics
The text described seven types of audits common in accounting practice. Which of the
following statements about them is most true?
A. Every audit involves some form of information technology.
B. Most audits involve some form of human judgment.
C. Both every audit involves some form of information technology and most audits
involve some form of human judgment are true.
D. Neither every audit involves some form of information technology nor most audits
involve some form of human judgment is true.
At the end of 2014, CNC Corporation’s accounting information system produced the
following trial balance:
CNC completed the following transactions in January 2015:
a. Purchased inventory on account, $300.
b. Collected cash from customers for prior year sales, $500.
c. Paid current month’s wages, $900.
d. Had land appraised. Cost of doing the appraisal (paid in cash), $700. Appraised value
of land, $3,000.
e. Sold inventory with a cost basis of $200 on account, $800.
f. Declared dividends, $50.
g. Hired additional sales staff. Expected monthly salaries, $80.
h. Purchased supplies for cash, $150.
i. Paid creditors for previous purchases, $150.
j. Signed a contract for annual employee retreat, $450.
All of the following transactions will be part of the third step in the accounting cycle
except:A. Transaction G.
B. Transaction I.
C. Transaction E.
D. Transaction D.
According to the COSO definition, internal control should promote ___ in financial
reporting.
A. Truth
B. Accuracy
C. Both truth and accuracy
D. Neither truth nor accuracy
View-driven AIS are designed to support a particular way of looking at the data they
contain. Which of the following is not a view commonly supported by a view-driven
AIS?
A. Balance sheet
B. Income statement
C. Statement of shareholders’ equity
D. Budget variance report
In which generic step of a financial statement audit is the auditor most likely to verify
the frequency of bank reconciliations?
A. First
B. Second
C. Third
D. Fifth
A circle in a data flow diagram may be labeled similarly to which shape in a systems
flowchart?
A. A rectangle
B. An inverted triangle
C. A circle
D. Any of these
According to the COSO definition, internal control should address objectives in all of
the following categories except:
A. Operations.
B. Compliance.
C. Reporting.
D. Fraud.
The steps commonly associated with the acquisition/payment process are listed below.
Number them in the correct order based on the information in the text.A.Authorize a
purchase.B.Disburse cash.C.Process purchase returns as necessary.D.Request goods and
services based on monitored need.E.Receive goods/services.
F.Purchase goods/services.
Consider the following illustration as you respond to the questions:
A relational database of the process depicted would include the “perform initial
screening” table. Which of the following statements about that table is most true?
A. It must have “applicant ID” as its primary key.
B. It will not be in third normal form if it includes “applicant ID” as a field.
C. It may include the same date in more than one record.D. Including the same date in
more than one record violates the principles of second normal form.