37 Internal control does not consist of policies and procedures that a protect assets from misuse b aid management in directing operations toward achieving business goals c guarantee the company will not go bankrupt d ensure that business information is accurate 38 An account is said to have a debit balance if a the amount of the debits exceeds the amount of the credits b there are more entries on the debit side than on the credit side c its normal balance is debit without regard to the amounts or number of entries on the debit side d the first entry of the accounting period was posted on the debit side 39 Which statement is true in regards to the ratio Number of Days Sales in Inventory a generally, the lower the number of days sales in inventory, the better b generally, the higher the number of days sales in inventory, the better c generally, the ratio is too difficult to calculate and therefore, not frequently used d generally, the number of days sales in inventory ratio provides meaningless info 40 The objectives of internal control are to a control the internal organization of the accounting department personnel and equipment b provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with c prevent fraud, and promote the social interest of the company d provide control over internal use only reports and employee internal conduct 41 A check drawn by a depositor in payment of a voucher for $725 was originally recorded in the journal as $257 What correcting entry is required in the depositor's accounts a debit Accounts Payable credit Cash b debit Cash credit Accounts Receivable c debit Cash credit Accounts Payable d debit Accounts Receivable credit Cash 42 Financial reports are used by a management b creditors c investors d all of the above 43 Which of the items below is not a business organization form a entrepreneurship b sole proprietorship c partnership d corporation 44 If the cost of an item of inventory is $70 and the current replacement cost is $75, the amount included in inventory according to the lower of cost or market method is a $5 b $70 c $75 d $145 45 Which of the accounts below would be closed by making a debit to the account a Accounts Payable b Fees Earned c Jackson Samuel, Drawing d Rent Expense

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37. Internal control does not consist of policies and procedures that a. protect assets from misuse b. aid management in directing operations toward achieving business

37. Internal control does not consist of policies and procedures that

a.	protect assets from misuse
b.	aid management in directing operations toward achieving business goals
c.	guarantee the company will not go bankrupt
d.	ensure that business information is accurate

____ 38. An account is said to have a debit balance if

a.	the amount of the debits exceeds the amount of the credits
b.	there are more entries on the debit side than on the credit side
c.	its normal balance is debit without regard to the amounts or number of entries on the debit side
d.	the first entry of the accounting period was posted on the debit side

____ 39. Which statement is true in regards to the ratio Number of Days Sales in Inventory?

a.	generally, the lower the number of days sales in inventory, the better
b.	generally, the higher the number of days sales in inventory, the better
c.	generally, the ratio is too difficult to calculate and therefore, not frequently used
d.	generally, the number of days sales in inventory ratio provides meaningless info

____ 40. The objectives of internal control are to

a.	control the internal organization of the accounting department personnel and equipment
b.	provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with
c.	prevent fraud, and promote the social interest of the company
d.	provide control over "internal-use only" reports and employee internal conduct

____ 41. A check drawn by a depositor in payment of a voucher for $725 was originally recorded in the journal as $257. What correcting entry is required in the depositor's accounts?

a.	debit Accounts Payable; credit Cash
b.	debit Cash; credit Accounts Receivable
c.	debit Cash; credit Accounts Payable
d.	debit Accounts Receivable; credit Cash

____ 42. Financial reports are used by

a.	management
b.	creditors
c.	investors
d.	all of the above

____ 43. Which of the items below is not a business organization form?

a.	entrepreneurship
b.	sole-proprietorship
c.	partnership
d.	corporation

____ 44. If the cost of an item of inventory is $70 and the current replacement cost is $75, the amount included in inventory according to the lower of cost or market method is