1) Which of the following would indicate poor internal control over accounts receivable?

	The same person handling cash receipts also records the accounts receivable transactions.
	The person handling cash receipts passes the receipts to someone who enters them into accounts receivable.
	The mailroom employees open the mail and give the cash receipts to another employee.
	The person who handles accounts receivable would not write off accounts as uncollectible.

2) Accumulated depletion is a(n)

	contra-asset account.
	cash account.
	contra-liability account.
	expense account.

3) Allied Industries reported net income of $52,000, depreciation expenses of $13,000, a gain on a land sale of $3,000, and a decrease in accounts receivable of $1,500. Under the indirect method, net cash flows from operations is

	$63,500.
	$66,500.
	$69,500.
	$60,555.