Tag: Topic 2

Which ONE of the following is a risk associated with the sales system?

Select ONE answer:

1. Orders may be taken from customers who are not able to pay
2. Goods may be dispatched but not invoiced
3. The whole credit period offered might not be taken
4. Money might be received at the premises, but not banked

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – It is not accurate, as it is in the company’s interest for its customers to take the whole credit period and pay sooner. This would pose a risk to the purchasing system, as it would benefit the company to take the entire credit period granted by its suppliers.
4. Not correct

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Which ONE of the following reduces password effectiveness?

Select ONE answer:

1. Frequent changes of passwords
2. Displaying the password on screen
3. Automatic disconnection after failed attempts to access the system
4. Disciplinary offence if passwords are revealed

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct => Displaying the password on screen would reduce password effectiveness. The existence of frequent changes of passwords, automatic disconnection after failed attempts and disciplinary offences if passwords are revealed would all increase password effectiveness.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following reduces password effectiveness?

Select ONE answer:

1. User selection of passwords
2. Frequent changes of passwords
3. Automatic disconnection after failed attempts to access the system
4. Disciplinary offence if passwords are revealed

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct => User selection of passwords would reduce password effectiveness. The existence of frequent changes of passwords, automatic disconnection after failed attempts and disciplinary offences if passwords are revealed would all increase password effectiveness.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following is an example of an internal control which operates at Big Staffie plc.

In each example, select which control activity is illustrated:

– The finance director compares monthly expenditure on consumables to the budgeted expenditure.

Select ONE answer:

1. Information processing
2. Authorisation
3. Performance review
4. Segregation of duties

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct => Performance review includes reviews and analyses of actual performance against budgets, forecasts and prior period performance.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following is an example of an internal control which operates at Big Staffie plc.

In each example, select which control activity is illustrated:

– The financial accountant signs the bank reconciliation, which was prepared by a member of his staff.

Select ONE answer:

1. Information processing
2. Authorisation
3. Performance review
4. Segregation of duties

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct =>   Authorisation showing that the accountant has reviewed the reconciliation.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.