1.According to GAAP, to be useful, accounting information must be all of the following EXCEPT:

1. Relevant
2. Reliable
3. Subjective
4. Comparable

2.

An increase in the cost of goods sold would cause a companys profit margin to

a. increase.

b. decrease.

c. remain unchanged.

d. Must be offset by an increase in the selling price.

3.

Which of the following is not an element of internal control?

1. Assigning responsibilities to individuals who have the authority to administer them
2. Separation of duties whenever possible
3. Assigning to one individual the responsibility for accounting for and custody of assets
4. Relying on internal and external audits