Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Sarbanes-Oxley was passed in response to which of the following? 1) A) The mounting government deficit B) The accounting scandals of WorldCom and Enron C) The stock market crash of 2002 D) The savings and loan bailout 2) Which is NOT a provision of Sarbanes-Oxley? 2) A) Those who commit securities fraud may be sentenced to 25 years in prison.
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Sarbanes-Oxley was passed in response to which of the following? 1) A) The mounting government deficit B) The accounting scandals of WorldCom and Enron C) The stock market crash of 2002 D) The savings and loan bailout 2) Which is NOT a provision of Sarbanes-Oxley? 2) A) Those who commit securities fraud may be sentenced to 25 years in prison. B) Accounting firms are allowed to provide both audit services and a full range of consulting services to their public company clients. C) Auditors of public companies are under the scrutiny of the Public Company Accounting Oversight Board. D) Public companies must issue an internal control report evaluated by an outside auditor. 3) Which of the following items will NOT appear on the book side of the reconciliation? 3) A) The bank collected a note receivable of $1,000. B) A deposit was in transit. C) The bank charged a service fee of $20. D) A nonsufficient funds check of $75 was returned to the bank. 4) A check was written by a business for $205, but recorded in the cash payments journal as $502. How would this error be included on the bank reconciliation? 4) A) A deduction on the bank side B) An addition on the book side C) A deduction on the book side D) An addition on the bank side 5) A check of $75 deposited by a company was returned to the bank for nonsufficient funds. How would this information be included on the bank reconciliation? 5) A) An addition on the bank side B) A deduction on the bank side C) A deduction on the book side D) An addition on the book side 6) Check Number 6135 for $576 was incorrectly entered as $657. Which adjustment needs to be made? 6) A) Decrease the book balance. B) Increase the bank statement balance. C) Decrease the bank statement balance. D) Increase the book balance. 7) The following information is available for Matt’s Unlimited Company for…





