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Knowledge Check 5

Knowledge Check 5

Q • Question 1 0.4 out of 0.4 points Larry is an employee of Cracker Jack Electronics, and he needs his business travel expenses reimbursed, but must have approval for payment. He completes an expense report and attaches all of his receipts and submits it. Suzanna is Larry’s supervisor, and the assistant controller for Cracker Jack Electronics, and she is responsible for verifying Larry’s expense report and signing off on it for approval for reimbursement. This arrangement is called: • Question 2 0.4 out of 0.4 points Who prepares, creates, and is solely accountable for the official Financial Statements of a publicly traded company? • Question 3 0.4 out of 0.4 points You are the CEO of an organization, and you’re having a private, non-business dinner with a shareholder (who is not an employee but someone you have known since high school) one week before your company is expected to release its prior year financial results. In meeting with your CFO, you know there is a significant surprise profit shortfall coming from the Latin American organization. This shareholder says, "My kid is going off to college this fall, and things are really tight around my house since I just started my own business. I am so thankful your stock has been doing well. If it rises just a few more dollars in price, I am going to cash out so I can send her to school. Think we will see a boost in price after next week's earnings release?" Which of the following is the best response? • Question 4 0 out of 0.4 points Which of the following is true as it relates to internal controls? • Question 5 0.4 out of 0.4 points When a company uses I.D. Badges, a security guard or even a receptionist to limit or control access to the company office building, which type of internal control does this refer to?

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1. D. Separation of Functions and/or Segregation of Duties 2. C. Company Management 3. A. Tell your friend you are very sorry, but you are not allowed to comment on pending financial results. 4. F. All of the Above 5. D. All Answers are Correct