51.

As the owner of a small, specialty toy store, with several employees, you would like to implement internal controls to safeguard the handling of cash, both received and disbursed, among those employees. Which of the following should you implement?

• Wait to implement a formal, written protocol for cash-handling procedures until the business expands.
• Assign one person the responsibility for all activities regarding cash handling.
• Hire an accountant to handle all daily cash activities.
• Assign one person to count the cash received from daily sales, one to verify the cash for deposit against sales receipts, and another to oversee the payment of bills.

52.

Which type of corporation limits the number of shareholders to 100, who must all be U.S. citizens or residents, and allows companies to keep profits from being double-taxed?

• C corporation
• sole proprietorship
• limited liability company
• S corporation

53.

Which of the following was responsible for creating the ten GAAP principles?

the Financial Accounting Standards Board

the Committee on Accounting Procedure

the Securities and Exchange Commission

the American Institute of Accountants

54.

You are the owner of a local coffee shop. You have purchased a new espresso machine for $10,000, which has an expected life span of 6 years. Use the Sum of the Years' Digits method to calculate the depreciation value of the espresso machine for year one.

• $700
• $950
• $2,857
• $3,000

55.

Which of the following assets is not subject to depreciation because its cost cannot be allocated to a particular time period?

• land
• equipment
• machinery
• company vehicles