Independent internal verification of the physical inventory process occurs when
· Question 18
Two companies report the same cost of goods available for sale but each employs a
different inventory costing method.
If the price of goods has increased during the period, then the company using
· Question 19
At Emerson Company, one bookkeeper prepares the cash deposits while the other
bookkeeper enters the collections in the journal and ledger.
Which of the following is the best explanation of this type of internal control principle over
cash receipts?
· Question 20
Which statement is incorrect?
· Question 21
Management usually wants ________ financial statements and the IRS requires all
businesses to file _________ tax returns.
· Question 22
All of the following are true regarding the management and monitoring of cash except
· Question 23
If Morris Corporation has a negative $131 million free cash flow, which of the following
statements is most likely true?
· Question 24
Which one of the following is not an objective of a system of internal controls?
· Question 25
Olympus Climbers Company has the following inventory data:
July 1
Beginning inventory
20 units at $19
$ 380
7
Purchases
70 units at $20
1,400
22
Purchases
10 units at $22
220
$2,000
A physical count of merchandise inventory on July 30 reveals that there are 32 units on
hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July
is.
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ACC 556 Crooked Scenario 2 Part 1
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