Internal control does notconsist of policies and procedures that
a. protect assets from misuse
b. ensure employees and managers comply with laws and regulations
c. guarantee the company will earn a profit
d. ensure that business information is accurate
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Q. 2) Which assets are amortized?
A) intangible assets
B) natural resources
C) property, plant and equipment, except for land
D) long-term investments in marketable stocks and bonds
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Q. 3) One method for circumventing segregation of duties is _____________________________
_ between one or more persons (or departments) to exploit a system and conceal an abuse such as fraud.
Fill in the blank(s) with correct word
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Q. 4) One difference between U.S. GAAP and IFRS is ________.
A) U.S. GAAP allows LIFO and IFRS does not
B) IFRS allows LIFO and U.S. GAAP does not
C) U.S. GAAP allows FIFO and IFRS does not
D) IFRS allows FIFO and U.S. GAAP does not
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Q. 5) Merchandise returned by a customer for a refund is called a sales discount.
a. True
b. False
Indicate whether the statement is true or false
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Q. 6) Lee's Lions has made a profit in each of the last two months. However, it is not generating enough cash from credit sales to cover all of its current expenses.
The owners understand the value of increasing sales volume by offering customers the ability to purchase on credit, but they are frustrated by the current situation. Explain to them the issues in granting credit and the management of accounts receivable.
What will be an ideal response?
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