Q1. A very small company would have the most difficulty in implementing which of
the following internal control activities?
Limited access to assets
Q2. Under the perpetual inventory system, which of the following accounts would not
Q3. Before a check authorization is issued, the following documents must be in
agreement, except for the
Q4. When payment is received by mail, a detailed list of such receipts would not be
retained by the
Q5. Which of the following is an appropriate internal control activity for cash?
Banking facilities should be used as little as possible.
Q6. Which of the following goods would not be included in merchandise inventory
for a purchasing company?
Goods in transit shipped FOB destination
Q7. A purchase order is sent from a company’s
Purchasing department to the supplier.
Q8. Which of the following is not an internal control activity for cash?
The amount of cash on hand should be kept to a minimum.
Q9. Which of the following documents would not originate with the purchasing
Q10. Chupka Company experienced the following events during the period:
A tabulation of invoices at the end of the day showed $800 in MasterCard
invoices, which were deposited in a bank account at full value less a 5 percent
Made a sale on American Express card for $400 and mailed invoice to
Received payment from American Express at 96 percent of face value.
The entry to record transaction 3 would include a(n)
increase in Cash for $400.
Q1. Which of the following is an inventory costing method?
Q2. A retail store has goods available for sake of $2 million at retail and $1,100,000
at cost, and ending inventory of $160,000 at retail. What is estimated cost of ending
Q3. Assuming that a perpetual inventory system is used, what is ending inventory on
a FIFO basis?
Q4. An overstatement of ending inventory in one period results in
an overstatement of the ending inventory of the next period.
Q5. Inventory turnover is expressed in terms of
Q6. Manufacturing overhead would not include which of the following costs?
Q7. A company has cost of goods available for sale of $250,000, sales of $312,000,
and a gross profit percentage of 30 percent. Using the gross profit method, what is the
Q8. A periodic inventory system is used.
Using LIFO, cost of goods sold is
Q9. Which of the following is an inventory processing system?
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