The section of Sarbanes Oxley that provides for fines and imprisonment of up to 20 years to individuals who corruptly alter, destroy, mutilate, or conceal documents with the intent to impair the document's integrity or availability for use in an official proceeding, or to otherwise obstruct, influence or impede any official proceeding is:
a. Title V Analysts Conflicts of Interests
b. Title VIII Corporate and Criminal Fraud Accountability
c. Title IX White-Collar Crime Penalty Enhancements
d. Title XI Corporate Fraud and Accountability
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Q. 2) NSF checks are checks that have been deposited in the bank, but bounced.
Indicate whether the statement is true or false
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Q. 3) To complete transactions with the bank, electronic funds transfer (EFT) systems use
a. a computer.
b. checks.
c. currency.
d. drafts or money orders.
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Q. 4) Abbey Co sold merchandise to Gomez Co on account, 35,000, terms 2/15, net 45 . The cost of the merchandise sold is 24,500 . Abbey Co issued a credit memo for 3,600 for merchandise returned that originally cost 1,700 . Gomez Co paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co on the above transactions?
a. 10,500
b. 30,772
c. 7,972
d. 31,400
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Q. 5) The operating cycle for a merchandising firm is ________.
A) obtain cash from stockholders, invest cash in equipment, earn more cash
B) borrow cash from lenders, earn cash from customers, repay lenders
C) start with cash, buy inventory, sell inventory to customers, collect cash from customers
D) issue stock to owners, earn a profit, pay dividends to owners
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Q. 6) Regarding internal control systems:
a. ultimate ownership of the system should rest with the board of directors.
b. a properly implemented system can be expected to provide 100 percent assurance that the organization will meet its objectives.
c. both a. and b.
d. neither a. not b.
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