A necessary element of internal control is
a. database
b. systems design
c. systems analysis
d. information and communication
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Q. 2) The trust service principle of processing _____________________________
_ determines whether processing is complete, accurate, timely and authorized.
Fill in the blank(s) with correct word
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Q. 3) A business will have depletion expense only if it has ________.
A) current assets that are consumed during the period
B) property, plant, and equipment that are used in operating activities
C) natural resources like timber and oil
D) intangible assets like copyrights and trademarks
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Q. 4) Grand Forks Enterprises sells toy airplanes to retailers such as K-Mart and Wal-Mart. Information about inventory is contained in the table below. The company uses a FIFO perpetual inventory system.
Number of Units Unit Cost Total Cost
Beginning inventory 2,000 2.00 4,000
Sale (1,200)
Purchase 4,000 2.25 9,000
Sale (2,500)
Purchase 5,000 2.40 12,000
Sale (6,000)
Determine the cost of goods sold.
A) 20,800
B) 21,200
C) 21,880
D) 19,400
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Q. 5) The sales tax payable account is a revenue account that is credited for the amount of tax imposed on sales.
a. True
b. False
Indicate whether the statement is true or false
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Q. 6) The Multiplex Mart accepts VISA. During March, 140,000 in credit card sales were made. VISA charges 3 of sales as its service fee. Prepare the entry to record the credit card sales. Include the account titles and amounts.
Shareholders' equity
Assets Liab. CC Retained earnings
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