fellowing requirements about internal controls were enacted under the outside auditors must atest to the level of internal a) independent must develop sound internal controls over financial Serbwnes Orley Act ecet companies must continsaally assss the functionality of intemal controls outside auditors mast eliminate redundant intermal controls eporting z7. A company purchesed inventory as follow 200 units at $5.00 300 units at $5.50 The average unit cost for inventory is A) $5.00. B) $5.25. C $5.30. D) $8.50 28. If goods in transit are shipped destination A) the seller has legal title to the goods until they are delivered B) the buyer has legal title to the goods until they are delivered C) the transportation company has legal title to the goods w D) no one has legal title to the goods until they are delivered hile the goods are in tranoit of the following is not one of the main factors that contribute to frandulent activiaty? A) Opportunity B) Incompatible duties. C) Financial pressure. D) Rationalization Which of the following statements is true regarding profit margin? A) Profit margin can be improved by decreasing the gross profit rate and/or controlling operating espenses and other costs B) Profit margin does not vary across industries C) Discount stores with high merchandise turnover generally have higher profit margins. D) If the profit margin has a higher value, this suggests favorable return on each dollar of sales. 30. 31. During the year, Sarah's Pet Shop's merchandise inventory diecreased by $40,000. If the company's cost of goods sold for the year was S600000, purchases would have been A) $640,000. B) $560,000. C $520,000. D) Unable to determine. 32. Inventory costing methods place primary reliance on assumptions about the flow of A) goods. B) costs. C) resale prices D) values. 33. At December $31, 2014 Mokling Company's inventory records indlicated a bulance of $602,000 Upon further investigation it was determined that this amount included the following $112,000 in inventory 1200 inventory purchases made by Mohling shipped from the seller 12/27/14 terms FOB destination. due to be received until January 2nd dsinutin gosd old by Mobing with terms FOB destination on December 2% The goods are not expecdedo rech their destination until January 6 $6,000 of goods received on consigament from Dollywood Company What is Mohling's correct ending inventory balance at December 31, 20147 A) $490,000 B) $596,000 C) $410,000 D) $484,000