For Questions 1-7 circle the correct answer (7 marks-1 mark per question) 1.) When a trade receivable is collected that was previously written off which account is not impacted? a) Cash b) Allowance for doubtful accounts c) Accounts Receivable d) Bad Debt Expense e) Both B&D 2.) Which of the following is an example of an internal control? a) The IT group limits access to certain files on the company network to only those employees that require it b) The accounting group completes a bank reconciliation which is reviewed by senior management c)The warehouse manager signs and retains a copy of the bill of lading from a shipment received d) Both B&C e) All of the Above 3.) A company buys a building for $400,000. Before the building could be used it paid $40,000 plus 5% GST to replace the roof. It also paid $10,500 including 5% GST to get the building renovated and ready for the intended use. The building was ready for use on December 1, 2009 and the company estimates the useful life to be 20 years (straight line method). What is the historical cost of the building on December 1, 2019? a) $452,500 b) $225,000 c) $226,250 d) $450,000 e) $400,000 4.) For 2018 a company had an inventory turnover ratio of 10.1, a gross profit margin of 12.1% and a receivables turnover of 12.8. For 2019, the inventory turnover ratio was 8.7, the gross profit margin was 13.9% and receivables turnover was 9.9. Which of the following is the most likely reason for these changes? a) The company expanded its retail floor space by 15%. As a result, the total annual sales for the company increased 18% and Cost of Goods Sold increased by 20%. b) The company revised its credit policy to only allow credit sales to the top customers (those that have a high expectation of paying off their debts quickly). c) The company shifted operations to focus on selling higher priced and more profitable luxury items. To help more customers pay for the products, the credit policy was loosened. d) All are possible reasons for the changes ASUS VivoBook