A control plan that is designed to detect a fraud by having one employee periodically do the job of another employee is called:
a. segregation of duties
b. forced vacations
c. periodic audits
d. management control
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Q. 2) Timber, Inc. purchased land for 500,000. It is expected to produce a total of 200,000 cords of wood over 5 years, after which it will be sold for 100,000. In 2011, 39,000 cords of wood were cut. In 2012, 41,000 cords of wood were cut.
1. What is depletion expense per cord of wood? __________________
2. How much depletion should be recorded in 2011? _______________________
3. How much depletion should be recorded in 2012? _______________________
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Q. 3) A check for 342 was erroneously charged by the bank as 432 . In order for the bank reconciliation to balance,you must add 90 to the bank statement balance.
a. True
b. False
Indicate whether the statement is true or false
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Q. 4) FIFO means that the costs of the oldest items in inventory are ________.
A) the costs that attach to ending inventory at the end of the period
B) the costs that attach to the inventory sold during the period
C) reduced to the lower of cost or market value during the period
D) expensed when purchased
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Q. 5) Compute the amount of employer Social Security taxes by multiplying the Social Security taxable earnings by ____________________.
Fill in the blank(s) with correct word
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Q. 6) Timmy's Tires sold 18,750 worth of tires to customers using VISA. The credit card fee is 4 of sales. The amount of sales Timmy's Tires should recognize is ________.
A) 750
B) 19,500
C) 18,750
D) 18,000
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