Interim financial statements: A) Are required by the Congress B) Are neces5ary to achieve full disclosure about a business's operations. CL Are statements prepared for periods of less than one vear. D) Require the use of the perpetual method for inventories E) Cannot be prepared if the company follows the conservatism principle. 6. 7. When costs to purchase inventory regularly decline, which method of inventory costing will yield the lowest cost of goods sold? A) FIFO. B) LIFO. C) Weighted average. D) Specific identification. E) Gross margin. 8. The principles of internal control include: A) Separate recordkeeping from custody of assets. B) Maintain minimal records. C) Use only computerized systems. D) Bond all employees. E) Require automated sales systems An income statement account that is used to record cash overages and cash shortages arising from petty cash transactions or from errors in making change is titled: A) Cash Lost. B) Bank Reconciliation. C) Petty Cash. D) Cash Over and Short. E) Cash Receivable. 9. A) Is a set of procedures and approvals designed to control cash receipts and the acceptance of obligations. B) Establishes procedures for verifying, approving, and recording obligations for eventual cash The voucher system of control: ). C) Establishes procedures for receiving checks for the sale of verified, approved, and recorded activities disbursement. D) Applies only when muftiple purchases are made from the same supplier. E is required in large companies but not beneficial for small to mid-sized companies. ne that the custodian of a $450 petty cash fund has $65 in coins and currency plus $382 in ats at the end of the month. The entry to replenish the petty cash fund will include: debit to Cash for $382 credit to Cash Over and Short for A debit to Petty Cash for $385. sa. DIA credit to Cash for $385. El A debit to Cash for $450