Which of the following actions would most likely create an opportunity for fraud?
a. requiring all documents over seven years old be shredded
b. requiring that the department manager authorize purchase orders only for purchase amounts for more than $100
c. requiring one password code for each entire department to enter the storeroom
d. using a manual accounting system
c
FEEDBACK: a. Incorrect. This action would not create an opportunity for fraud.
b. Incorrect. The opportunity to make fake purchases would be present, but only for very small amounts.
c. Correct. This would allow anyone in the department to enter the storeroom to steal assets without being identified.
d. Incorrect. It isn't whether the system is manual or computerized, but the quality of the system that may or may not deter fraud.
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Production and sales estimates for June are as follows: Estimated inventory (units), June 1 16,000 Desired inventory (units), June 30 18,000 Expected sales volume (units): Area X 4,000 Area Y 6,000 Area Z 5,500 Unit sales price $20 The number of units expected to be manufactured in June is:
A) 15,500 B) 17,500 C) 16,500 D) 13,500
When a company's social responsibility initiatives become part of the way it operates its business every day, these initiatives are
A. normally based on a corporate social agenda. B. likely to be fully effective in creating a competitive advantage. C. ambiguous and rarely make a difference in the way the company does business. D. heavily dependent on encouraging employee morality. E. implausible to advance a positive, high-energy workplace environment.
________ communication travels from lower to higher ranks in the hierarchy of an organization.
A. Asynchronous B. Intrapersonal C. Horizontal D. Serial E. Upward
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A. Debit Insurance Expense $6,000; credit Accounts Payable $6,000. B. Debit Cash $6,000; credit Prepaid Insurance $6,000. C. Debit Prepaid Insurance $6,000; credit Cash $6,000. D. Debit Insurance Expense $3,000; credit Prepaid Insurance $3,000. E. Debit Insurance Expense $3,000; credit Accounts Payable $3,000.