nc3 reviewer

• Cesar Garcia has been an employee at the finance department of Great things Co. for the past 10 years. What action he had taken is the most desirable?

  
  

  He called the attention of a married office mate dating an also married co-employee
• Which is NOT a policy compliance?

  withholding financial reports to management and other stakeholder
• Statement 1: purpose of internal control, the same person who prepares payroll checks should also release them

  Statement 2: to achieve internal control over payroll operations, no changes in employee pay rates should be made without written authorization from management

  which is correct?

  statement 1 is incorrect; statement 2 is correct
• What is NOT CORRECT relative to cash collections?

  cash collectors and other employees can borrow from the cash collections
• The purpose of internal audit is to?

  ascertain that established company policies are observed
• Which is NOT a possible a post-closing trial balance item?

  drawing
• Closing entries?

  reflect the net income for the accounting period
• Which is NOT CORRECR as to why entity must make adjusting entries?

  to prepare for closing and reversing entries
• Every adjusting entry affects?

  both real and nominal account
• In the accounting process, financial statements must be prepared?

  after the adjusting entries have been made
• Financial statements must be prepared at least?

  annually
• 1: They are the means by which the information accumulated and processed in financial accounting is periodically communicated to the users

  2: They are structured financial representative of the financial position and financial performance of an entity

  
  

  Which is correct?

  Both 1 and 2
• The purpose of the worksheet is to?

  facilitate the preparation of financial statements
• Which statement about worksheet is NOT CORRECT?

  total debits and total credits in the income statement columns are not the same before and after the recognition of the net income or net loss
• Which of the following errors would NOT prove the equality of the trial balance debits and credits?

  A debit entry of P11,000 for rent was posted as P10,000