1.Under the periodic method of inventory valuation, cost of goods sold can be calculated as

a. cost of goods available for sale minus beginning inventory.

b. beginning inventory plus purchases.

c. goods available for sale minus ending inventory.

d. beginning inventory plus cost of goods sold.

2. An organization uses internal controls to enhance the accuracy and reliability of its accounting records and to:

a. safeguard its assets.

b. ensure compliance with GAAP.

c. guarantee the hiring of honest employees.

d. reduce its audit fees.

3. Having one person handle incoming cash receipts and a different person post to the Accounts

Receivable customer detail is an example of

a. inadequate internal control.

b. duplication of effort.

c. external verification.

d. segregation of duties.

4. Pre-numbering documents

1. helps to prevent a transaction from not being recorded.
2. is a type of segregation of duties.
3. provides independent verification.
4. is not an effective internal control.