Quiz 2 Ch 6,7 Answer Key

Quiz 2 Ch 6,7 Answer Key - Monday Name Accounting 100 Quiz...

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Monday, March 10, 2008 Name:___________________________ Accounting 100 Quiz 2 Lecture 1 1. Which Internal Control Procedure is most consistent with the use of a bank? a. Independent Internal Verification b. Physical, Mechanical and Electronic Controls c. Segregation of Duties d. Establishment of Responsibilities 2. Many companies use just-in-time inventory methods. Which of the following is not an advantage of this method? a. It limits the risk of having obsolete items in inventory. b. Companies may not have quantities to meet customer demand . c. It lowers inventory levels and costs. d. Companies can respond to individual customer requests 3. At December 31, 2007 Sunrise Company’s inventory records indicated a balance of $752,000. Upon further investigation it was determined that this amount: Included $112,000 in inventory purchases made by Sunrise shipped from the seller 12/27/07 terms FOB shipping point, which will be received January 2nd Included $74,000 in goods sold by Sunrise with terms FOB destination on December 27 th . The goods will reach their destination January 6 th . Did not include $6,000 of goods held on consignment from Dollywood Company What is Sunrise’s correct ending inventory balance at December 31, 2007? a. $640,000 c. $566,000 b. $746,000 d. $678,000 Answer should be $752,000 as all are correct. This problem was thrown out and all were given credit for it . 4. The Sarbanes-Oxley Act of 2002:
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This note was uploaded on 04/02/2008 for the course ACCT 100 taught by Professor Punke during the Spring '08 term at University of Wisconsin.

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Quiz 2 Ch 6,7 Answer Key - Monday Name Accounting 100 Quiz...

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