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MULTIPLE CHOICE 1.              A physical inventory usually taken a. in the middle of

Question : MULTIPLE CHOICE 1.              A physical inventory usually taken a. in the middle of : 1410855

 

MULTIPLE CHOICE

 

1.              A physical inventory is usually taken

a.

in the middle of the fiscal year.

b.

at the peak of the busy season.

c.

at the end of the fiscal year.

d.

at December 31.

 

 

 

2.              A company's merchandise inventory includes all of the following, except

a.

goods in warehouses.

b.

goods sold, but not yet delivered.

c.

goods in transit from suppliers, if title has passed to the merchandiser.

d.

goods in trucks between the warehouse and the store.

 

 

 

3.              A company's merchandise inventory includes all of the following, except

a.

goods in possession, but which cannot be sold.

b.

goods on shelves.

c.

damaged goods that can be sold at a reduced price.

d.

goods in storerooms.

 

 

 

4.              Under the perpetual inventory system, the entry to recognize inventory losses would contain a

a.

debit to Cost of Goods Sold.

b.

debit to Merchandise Inventory.

c.

credit to Gross Margin.

d.

credit to Cash.

 

 

 

5.              A good system of internal control is designed to achieve each of the following, except

a.

efficiency of operations.

b.

reliability of financial reporting.

c.

compliance with relevant laws and regulations.

d.

attainment of target sales.

 

 

 

6.              The Sarbanes-Oxley Act of 2002 requires all of the following to certify a public company's system of internal control, except for the

a.

chief financial officer.

b.

auditors.

c.

stockholders.

d.

chief executive officer.

 

 

 

7.              Which of the following is not a primary concern of internal control?

a.

Fairness of financial statements

b.

Accuracy of accounting records

c.

Safeguarding assets

d.

Efficiency of company operations

 

 

 

8.              All of the following are examples of internal control activities, except

a.

bank reconciliation.

b.

rotation of key personnel.

c.

customer satisfaction surveys.

d.

insistence that employees take earned vacations.

 

 

 

9.              A traditional definition of internal control specifically includes all of the following features, except

a.

reliability of accounting data.

b.

detection of employee theft.

c.

promotion of operational efficiency.

d.

adherence to prescribed managerial policies.

 

 

 

10.              Each of the following is a feature of internal control, except

a.

recording of all transactions.

b.

a sound marketing plan.

c.

sound personnel policies.

d.

separation of duties.

 

 

 

 

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