Sarbanes-Oxley Act of 2002

1. The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the financial scandals of the early 2000s. (Points: 1)

       [pic]True

       [pic]False

2. There are two internal control objectives and they are to ensure accurate financial reports, and ensure compliance with applicable laws. (Points: 1)

       [pic]True

       [pic]False

3. The Sarbanes-Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures. (Points: 1)

       [pic]True

       [pic]False

4. The control environment in an internal control structure is the attitude and awareness of internal control by all employees. (Points: 1)

       [pic]True

       [pic]False

5. Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting. (Points: 1)

       [pic]True

       [pic]False

6. Internal control is enhanced by separating the control of a transaction from the record-keeping function. (Points: 1)

       [pic]True

       [pic]False

7. A customer's check received in settlement of an account receivable is considered cash. (Points: 1)

       [pic]True

       [pic]False

8. Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash. (Points: 1)

       [pic]True

       [pic]False

9. For strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees. (Points: 1)

       [pic]True

       [pic]False

10. If the balance in Cash Short and Over at the end of a period is a credit, it indicates that cash shortages have exceeded cash overages for the period. (Points: 1)

       [pic]True

       [pic]False

11. The bank often informs the company of bank...