Lesson 9 Quiz

Classroom materials run about $1,000 a month from July to December, then climb every month to $2,382 in June with no change in enrollment. What is the best first step? *

Cut the classroom budget

Pull the card statements and receipts behind that line

Fire the person who buys supplies

Ignore it; supply costs vary

At March 31, the AP aging totals $6,605.98, but the balance sheet shows $8,946 in Accounts Payable. What does the $2,340 difference suggest? *

A rounding error

Something was recorded to payables outside the normal vendor-bill process

The State owes the center money

Payroll was not recorded

Chesapeake Food Distributors shows a negative balance on the March 31 AP aging. What likely happened? *

The vendor issued a refund

A bill was paid twice

The center returned food

The bill is in dispute

Tuition discounts roughly doubled from January to June. Which control would have caught this sooner? *

A higher tuition rate

A written discount policy requiring approval, with discounts reviewed monthly

A larger budget

An annual audit only

Which of these is NOT a red flag? *

Higher utilities in January

A supply line rising steadily with flat enrollment

An AP aging total that does not match the balance sheet

A negative vendor balance

Which is an example of separation of duties? *

One person enters bills, approves them, and signs the checks

The person who enters vendor bills does not approve or sign the payments

The director does all bookkeeping

Bills are paid only once a year