66.

Which of the following is NOT one of the purposes that internal controls in accounting serve?

• ensure that financial information is accurate, reliable, and timely
• safeguard the assets of a company from any form of loss
• ensure compliance with federal, state, and local business laws
• provide a way for the public to monitor the financial practices of corporations

67.

What is the goal of window-dressing?

• Placate current investors by shifting revenue from one accounting period to another in order to meet management's projected goals.
• Placate current investors by using a portion of expenses in one accounting period and another portion in another accounting period.
• Attract new investors by having financial statements that look like the company's doing very well financially.
• Attract new investors by focusing on departmental budgets.

68.

If Todd's Hardware orders $1,500 in inventory from a vendor using a credit card, but won't receive it until next week, which account will the expense be recorded in?

Accounts receivable

Noncurrent assets

Charge

Inventory

69.

Which of the following comes second in order of closing entries?

• income summary
• expense
• revenue
• dividend

70.

As the accountant of a local tattoo parlor, you have been directed to prepare a statement of cash flows. Which of the following activities engaged in by the parlor's business owner would be considered a cash outflow operating activity?

• leasing the empty office space next door, with the goal of expanding the shop
• the purchase of inks and needles, as well as the payment of employee wages
• offering services such as permanent makeup and piercing, in addition to tattoos
• the sale of gently used, but out-of-date, equipment such as machines, tattoo chairs, and computers