1. On March 1 a sale is made and the customer has a right to return the good which expires April 29. There is no ability to predict the amount of returns.

a) Inventory would not be reduced until April 29

b) An account receivable would be recorded on April 29

c) An asset of Right to Recovery would be recorded on March 1

2. Which of the following operations ideally should not be performed by the same person?

a) Type, sign, and mail cheques, and prepare the bank reconciliation

b) Order departmental supplies, file correspondence, type memos, and type cheques

c) Prepare journal entries and bank reconciliations

3. Non-monetary transactions where there is an exchange of similar assets should normally be recorded at

a) Book value of asset received

b) Book value of asset given up

c) Fair market value of asset given up