answer all the questions

2:32 docs.google.com/forms/d/e/TO 1) A properly designed internal control system is a key part of systems design. analysis, and performance. * False True 2) Internal control policies and procedures are standard across companies. * True False 3) Internal control over cash receipts ensures that all cash received is properly recorded and deposited. False True ! 2:32 4) The petty cash fund should be reimbursed at the end of the period even if the fund is not low on money.* True False 5) Damaged goods are not counted in inventory if they cannot be sold. True False 6) A business that has inventory items that are ordinarily interchangeable may use either the FIFO or moving weighted average methods to assign costs to inventory. True False ! 2:32 docs.google.com/forms/d/e/1 O! 7) An advantage of the moving weighted- average method is that it tends to smooth out price changes. True False 8) In a period of inflation, FIFO usually gives a lower taxable income and thus a tax advantage. True False 9) The FIFO method assumes that costs for the most recently purchased items are recovered first. * False True ! 2:32 10) The consistency principle means that one costing method, such as FIFO or moving weighted average, has to be used exclusively. True False 11) A merchandiser earns profit by buying and selling merchandise. False True 12) A service company earns profit by buying and selling merchandise.* False O True 2:32 docs.google.com/forms/d/e/1 e . 13) Gross profit is also called gross margin.* True False 14) Cost of goods sold represents the cost of buying and preparing merchandise for sale. False True 15) The amount of gross profit for a merchandising business will be the same under both the accrual basis and the cash basis of accounting. False True ! 2:32 16) Wholesalers Buy products from manufacturers and sell to consumers All of the above Buy products from other wholesalers and sell to consumers Buy products from retailers and sell to consumers Buy products from manufacturers and sell to retailer 17) Gross profit is * Subtracted from operating income to get profit A special general ledger account Only calculated when using the perpetual Inventory system Net sales less cost of goods sold The same as profit ! 18) Merchandise inventory 2:32 docs.google.com/forms/d/e/1 . 18) Merchandise inventory Can include supplies Is a current asset Is an expense Merchandise inventory Optionis a type of long-term investment 5 19) A periodic inventory system O All of the above Does not require a physical count of inventory Requires updating the inventory account every month Records the cost of new merchandise purchased in a permanent account Records the cost of new merchandise purchased in a temporary account ! 2:33 22) The difference between a company's gross profit on sales and total operating expenses is Profit Net loss Net sale Income from operations Income summary 23) DVDs usually sell for $14 per unit, and have a profit margin of 25%. However, the expected selling price has fallen to $7 per unit. The Movie Company's current inventory includes 200 units purchased at $10 per unit. Calculate the value of the inventory at the lower of cost and net realizable value. $1,500 $1,350 $1,800 $2,000 2:33 24) In reconciling the bank balance, an unrecorded debit memorandum for printing cheques should be Added to the bank balance of cash Deducted from the book balance of cash Deducted from the bank balance of cash Noted as a memo Added to the book balance of cash 25) Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement. In preparing September's bank reconciliation, the company should Deduct the deposit from September's book O balance and add it to October's book balance Add the deposit to the bank statement balance Send the bank a debit memorandum Add the deposit to the book balance of cash Deduct the deposit from the bank 2:34 26) Expenses that support the overall operations of a business and include the expenses of such activities as providing accounting services, human resource management, and financial management are called Operating expenses Miscellaneous expenses Purchasing expenses Selling expenses General and administrative expenses 27) MicroAge sells cellphones at a selling price that includes a 65% markup on cost. If a cellphone costs MicroAge $300, its selling price is None of these answers is correct. $391.50 $461.54 $214.81 $495.00 2:34 28) The operating cycle of a merchandising company Begins with the purchase of merchandise Ends with the collection of cash from the sale of merchandise Varies among types of businesses Applies to both cash and credit sales All of the above 29) A company shows an $800 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $600. This adjusting entry results in $600 more profit $600 less profit $200 difference between the debit and credit columns of the unadjusted trial balance $400 in the Balance Sheet Credit column on the work sheet 2:34 VZUMIEMC Delveen COCO credit columns of the unadjusted trial balance $400 in the Balance Sheet Credit column on the work sheet $400 in the Income Statement Debit column on the work sheet O 30) If, in preparing a work sheet, an adjusted trial balance amount is sorted to the wrong work sheet column, the Balance Sheet columns will balance on completing the work sheet, but with the wrong profit, if the amount sorted in error is. O An expense amount entered in the Balance Sheet Credit column A revenue amount entered in the Balance Sheet Debit column An asset amount entered in the Balance Sheet Credit column A liability amount entered in the Income Statement Credit column A liability amount entered in the Balance Sheet Debit column 2:34 31) Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance? Entering a revenue amount in the Balance Sheet Debit column. Entering an expense amount in the Balance Sheet Debit column. Entering a liability amount in the Income Statement Credit column. Entering a liability amount in the Balance Sheet Credit column Entering an asset amount in the Income Statement Debit column. 32) Accounts that are used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period, are Temporary accounts Financial accounts Permanent accounts Summary accounts 1 Closing accounts 2:34 33) The Income Summary account is The Income Summary account is Not a permanent account The account from which the amount of O profit or loss is transferred to the owners capital accounts in a partnership A temporary account All of these 34) Which of the following statements is incorrect? Temporary accounts carry a zero balance at the beginning of each accounting period. Permanent accounts are another name for temporary accounts. Permanent accounts include assets. Permanent accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence O The Income Summary account is a temporary account Permanent accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence. The Income Summary account is a temporary account. 35) After all closing entries are made and posted, the balance in the owners' capital account in the ledger will be equal to * The beginning balance in owners' capital in the statement of changes in equity O Profit or loss for the year The balance of owners' capital on the pre- closing trial balance The balance of owners' capital on the post- closing trial balance O Zero