Quality Assurance & Compliance Flashcards
7 cards from real CB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Quality Assurance & Compliance flashcards as text
Which of the following is an example of a detective control in a bookkeeping environment?
Answer: Conducting monthly bank reconciliations
Monthly bank reconciliations are detective controls because they identify discrepancies after transactions have already been recorded.
A bookkeeper omits a $2,000 credit sale from the sales journal. How would this error affect the trial balance?
Answer: The trial balance will remain in balance but revenue will be understated
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.
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?
Answer: A bookkeeper discloses records in response to a valid court subpoena
Disclosure required by a valid legal process such as a court subpoena is a recognized exception to the professional duty of confidentiality.
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:
Answer: A payment was recorded in the ledger but not yet received by the vendor
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.
Which IRS form must an employer file annually to report federal unemployment (FUTA) tax?
Answer: Form 940
Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return, filed once per year.
Which of the following errors would cause the debit column of a trial balance to exceed the credit column by $180?
Answer: A $90 credit was posted as a $90 debit
Posting a $90 credit as a $90 debit creates a $180 error in the trial balance: debits are overstated by $90 and credits understated by $90.
Under GAAP, when should revenue from services be recognized using the accrual basis of accounting?
Answer: When the service is performed, regardless of when payment is received
Under accrual accounting and ASC 606, revenue is recognized when performance obligations are satisfied, i.e., when the service is delivered.