1.- Answer true-false questions about internal control (L. o . 1)

a. Those employees responsible for safeguarding an asset should maintain the accounting records for that asset.

b. Complete, accurate, and up-to-date accounting records should be maintained.

c. Whenever possible, responsibilities should be assigned and duties subdivided in such a way that only one employee is responsible for a given function.

d. Employees should be assigned to one job and should remain in that job so that skill levels will be as high as possible.

e. The use of check protectors, cash registers, and time clocks is recommended.

f. An internal auditing function should not be implemented because it leads the employees to believe that management does not trust them.

g. One of the best protections against theft is to hire honest, competent employees.

h. A foolproof internal control structure can be devised if management puts forth the effort.

2.- Compute depreciation for two years using three depreciation methods; partial depreciation used first year.

Goodrich Company purchased a machine on October 1, 2011, for $100,000. The machine has an estimated salvage value of $30,000 and an estimated useful life of eight years.