During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost ofmerchandise sold is
a. FIFO
b. LIFO
c. average cost
d. weighted average
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Q. 2) An example of a corrective control is requiring that on a regular basis management must follow up on all errors and irregularities identified.
Indicate whether the statement is true or false
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Q. 3) On December 31, IOU Corporation issued 100,000 of 10-year, 8 bonds at 98. The bonds pay interest annually on December 31. How much cash did IOU Corporation receive when the bonds were issued?
A) 784,000
B) 100,000
C) 108,000
D) 98,000
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Q. 4) Program documentation provides a description of an application program and usually includes the program's purpose, program flowcharts, and source code listings.
Indicate whether the statement is true or false
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Q. 5) If the shipping terms are FOB shipping point, the buyer has to pay for freight costs.
Indicate whether the statement is true or false
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Q. 6) Self-employment tax is double the Social Security and Medicare rates.
a. True
b. False
Indicate whether the statement is true or false
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