10 10. 11. 12. Which cost flow assumption is most likely to coincide with the actual flow of perishable goods in a grocery store? a. FIFO b. LIFO c. Average Cost d. Both (a) and (b) are correct. Which of the following is the most likely to be prevented by a strong system of internal control? a. An employee steals cash from an unlocked cash register. b. A customer does not take advantage of a discount that is offered for prompt payment. c. A new employee arrives to work late. d. A company uses the LIFO cost flow assumption during a period of decreasing prices. Which of the following statements is correct regarding the format of a bank reconciliation? a. Outstanding deposits are added to the unadjusted cash balance per book records. b. A bank fee is subtracted from the unadjusted cash balance per book records. c. Earned interest is added to the unadjusted cash balance per bank records. d. An NSF check is subtracted from the unadjusted cash balance per bank records. 13. Which one of the following is NOT an objective of a system of internal controls? a. Safeguard company assets b. Enhance the accuracy and reliability of accounting records c. Improve the fairness of financial statements d. Reduce the risk of errors