Control goals of operations processes include:

Control goals of operations processes include:
 a. validity
  b. the control environment
  c. accuracy
  d. security of resources

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(Q. 2) Reader, Inc collected 12,000 in October 2011 from customers in exchange for 12-month subscriptions to its monthly magazine Reader. The October issue was the first issue of the subscription.
 
  How much revenue should the company report on its income statement for the year ended March 31, 2012?
  A) 12,000
  B) 8,000
  C) 6,000
  D) No revenue will be recognized until all the magazines are delivered.

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(Q. 3) Cash equivalents are found on the ________.
 
  A) Income statement
  B) Statement of financial position
  C) Statement of changes in shareholders' equity
  D) Statement of operations

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(Q. 4) Payroll expenditures represent a relatively small part of the total expenditures of most companies.
 a. True
   b. False
   Indicate whether the statement is true or false

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(Q. 5) A perpetual inventory system is an effective means of control over inventory.
 a. True
  b. False
 
   Indicate whether the statement is true or false

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(Q. 6) Prepaid insurance is ________.
 
  A) an accrual
  B) a deferral
  C) insurance expense
  D) a liability