CB Quality Assurance & Compliance 3

Question 1

Which of the following is an example of a detective control in a bookkeeping environment?

Accepted Answer

Conducting monthly bank reconciliations

Answer

Monthly bank reconciliations are detective controls because they identify discrepancies after transactions have already been recorded.

Question 2

A bookkeeper omits a $2,000 credit sale from the sales journal. How would this error affect the trial balance?

Accepted Answer

The trial balance will remain in balance but revenue will be understated

Answer

If both the debit to accounts receivable and the credit to sales are omitted, the trial balance stays in balance but revenue and assets are both understated.

Question 3

The American Institute of Professional Bookkeepers (AIPB) Code of Ethics requires bookkeepers to maintain confidentiality. Which situation would be an acceptable exception to this rule?

Accepted Answer

A bookkeeper discloses records in response to a valid court subpoena

Answer

Disclosure required by a valid legal process such as a court subpoena is a recognized exception to the professional duty of confidentiality.

Question 4

When reconciling accounts payable, a bookkeeper finds that the vendor statement shows a balance $500 higher than the accounts payable ledger. The most likely cause is:

Accepted Answer

A payment was recorded in the ledger but not yet received by the vendor

Answer

A payment recorded in the company's books but not yet reflected on the vendor's statement is the most common cause of this type of discrepancy.

Question 5

Which IRS form must an employer file annually to report federal unemployment (FUTA) tax?

Accepted Answer

Form 940

Answer

Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return, filed once per year.

(CB) Certified Bookkeeper Practice Test

(CB) Certified Bookkeeper Practice Test

CB Quality Assurance & Compliance 3