The three elements of the fraud triangle are:

A) Motivation.

B) Rationalization.

C) Opportunity.

D) All of the other answers are elements of the fraud triangle.

Answer: All of the other answers are elements of the fraud triangle.

The phrase "cooking the books" is commonly used to refer to:

A) The company's accounting records being thoroughly audited at the end of the year.

B) The company's financial statements being presented in a deceptive form.

C) The company's ability to provide timely financial information under operating pressure.

D) The inclusion of a variety of information in the financial statements.

Answer: The company's financial statements being presented in a deceptive form.

Occupational fraud:

A) Is the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employer's resources.

B) Occurs in only a few organizations and generally involves minor amounts.

C) Will be prevented when companies employ an auditor.

D) Is committed only by lower-level employees.

Answer: Is the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employer's resources.

Which of the following statements is true regarding the post-closing trial balance?

A) The post-closing trial balance will be distributed to investors and other stakeholders along with the financial statements.

B) The post-closing trial balance is a report prepared before the adjustments and the financial statements to prove that debits equal credits.

C) The post-closing trial balance is an internal report prepared as the last step in the accounting cycle.

D) The post-closing trial balance proves that all entries have been made correctly and accurately during the accounting period.

Answer: C

Which of the following accounts is(are) listed in a post-closing trial balance?

A) Prepaid Rent.

B) Accounts Payable.

C) Salaries Expense.

D) Two of these three accounts would be included in a post-closing trial balance.

Answer: D

Which one of the following accounts would NOT have a balance after closing entries?

A) Deferred Revenue.

B) Supplies.

C) Prepaid Rent.

D) Dividends.

Answer: D

A post-closing trial balance:

A) Is a list of all accounts and their balances after adjusting entries.

B) Is a list of all accounts and their balances before adjusting entries.

C) Is a list of all accounts and their balances after closing entries.

D) Is a trial balance adjusted for cash-basis accounting.

Answer: C