A policy of having separate personnel working in accounts payable and accounts receivable would be an example of properly using which concept: a. cost-benefit analysis b. adequate documentation c. physical safeguards d. independent check e. separation of duties 1. 2. For a magazine company, revenues are not recognized when cash is received from the customer before delivery of the magazine. a. True b. False 3. A sales return occurs when a buyer returns merchandise to the seller, and a sales allowance is when the seller allows a lower price to be charged to the customer a. True b. False 4. The credit terms 2/10, n/30 means that the customer may take a $2.00 cash discount if she pays within 10 days. a. True b. False 5. Mountview Company sold inventory on account for $700. A week later, the inventory was returned and a full credit was given to the customer. The journal entry to record the return of the inventory would be: a. Cash 700 700 700 b. Sales c. Sales Discounts d. Sales Returns &Allowances 700 e. Sales Returns&Allowances 700 Accounts Receivable Accounts Receivable Accounts Receivable Sales Accounts Receivable 700 700 700 700 700 6. If unit costs and prices did not fluctuate, specific identification, LIFO, FIFO, and weighted average would show the same ending inventory and cost of goods sold balances. a. True b. False