Maltiple Choice Questions (S pts) Which of the following is not one of the purposes of an internal control system. A) Safeguarding the company's assets B) Ensuring that the company is using the most effective marketing C) The assessment of the degree of compliance with company policies and public laws D) The evaluation of performance. Link Company is preparing their financial statements. Gross margin is normally 40% of sales. 7. Information taken from the company's records revealed sales of $40,000; beginning inventory of $6,000 and purchases of $30,000. The estimated amount of ending inventory would be: A) S12,000. B) S14,000. C) $16,000. D) $24,000 Use the following to answer question 8 Company Sales $40,000 $60,000 $50,000 $90,000 16,000 24,000 20,000 22,500 11.200 18,600 15.002 16.200 Cost of Goods Sold 24,0 36,000 30,0 67.500 Gross Margin Net Income 8. Based on common-sized income statements, which of the companies spent, relative to sales, the most on operating expenses? A) Company A B) Company B C) Company C D) Company D The purpose of common size financial statements is to: A) compare the amount of common stock to other types of stock. B) make comparisons between firms of different sizes. C) make comparisons between different time periods D) Both "b" and "c" are correct. 9. The April 30, 2006 bank statement for Tuttles Corporation shows an ending balance of $34,451. The unadju 10 cash account balance was $28,350. The accountant for Tuttles gathered the following information: 1 April's deposit in transit was $4,240 2 The bank statement reports a service charge of $39 3 A credit memo included in the bank statement shows interest earned of $95 4 Outstanding checks totaled $ 10,935 5 The bank statement included a $650 NSF check deposited in April What is the true cash balance as of April 30, 2006? A) 27,106 B) 27,756 C) 31,901 D) 31,996