Question 1

The seller's price to the buyer is not fixed or determinable when:

Options :

A : When the price is not contingent on some future events

B : The transaction includes an option to exchange the product for others

C : A service or membership fee is not subject predictable cancellation during the contract period.

D : Payment terms are not extended for a substantial period.

Answer: B

Question 2

___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

Options :

A : Payable cash

B : Cash advances

C : counterfeit checks

D : Payable checks

Answer: B

Question 3

The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:

Options :

A : Bogus claims

B : Billing scheme

C : Reliance billing

D : Misappropriate claims

Answer: A

Question 4

____________ is a summary of the account balances carried in a ledger.

Options :

A : Balance sheet

B : Income statement

C : Financial statement

D : General journal

Answer: C

Question 5

Bid-rigging scheme occurs when:

Options :

A : an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.

B : an employee does not assist a vendor in winning a contract through the competitive bidding process.

C : an employee once assists a vendor in winning a contract through a single competitive bidding process.

Answer: A