Allowing only the treasurer to sign cheques is an example of which control activity?

Question 22 options:

	documentation
	physical controls
	assignment of responsibility
	segregation of duties

On the April 30 bank reconciliation, a deposit made by a company to its bank account on April 18 will likely appear as a(n)

Question 23 options:

	deduction from the balance per bank.
	deduction from the balance per books.
	This will not affect the current periods bank reconciliation.
	addition to the balance per books.

If goods in transit are shipped FOB destination,

	the buyer has legal title to the goods during transit.
	no one has legal title to the goods until they are delivered.
	the transportation company has legal title to the goods while the goods are in transit.
	the seller has legal title to the goods until they are delivered.

Montreal Inc. is a wholesaler of electronics. It purchased 1,200 units of Product X for $600 each during 2018. The selling price during the year was $800 per unit. At year end, it had 200 units on hand and due to changes in technology, the selling price will have to be reduced by 35% in order to sell them. The value of each unit of Product X for the year-end inventory presentation should be

	$280
	$600
	$660
	$520

A company just starting a business purchased three inventory items at the following prices: March 2, $150; March 7, $160; and March 15, $180. If the company sold one unit for $230 on March 10 and one unit for $250 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory?

	$167.50
	$250.00
	$163.34
	$180.00

Which of the following is not a good control activity over cash?

	Payments to creditors should be made in cash.
	Cash should be deposited daily.
	The amount of cash on hand should be kept at a minimum.
	There should be limited access to cash.

Which of the following is not a suggested procedure to establish a good control activity over cash disbursements?

	Different individuals approve and make payments.
	The bank statement is reconciled monthly.
	Blank cheques are stored with limited access.
	pre-signed blank cheques