1. Net income cannot be considered a cost of running a business.

A. True

B. False

2. Lapping is a method of fraud that can occur when:

A. Jobs are not properly rotated

B. The same employee is in control of both accounts receivable records and cash received in payment of those accounts

C. A cashier does not have sales check entries on the register tape checked

D. Written procedures are not prepared for the person in control of receivables

3. An objective of internal control is to safeguard the assets of a business.

A. True

B. False

4. The number of rooms cleaned per housekeeper per day is a type of productivity measure.

A. True

B. False