me section, fill about the 12. The control enviro nment is the overall attitude of management and employees importance of controls. A True False People? t are some of the warning signs of Internal Control Problems with regard to A. Abrupt change in lifestyle B. Refusing to take a vacation 13. Wha Excessive use of alcohol or drugs Sudden increase in slow payments A and B and C above E. 14. What are some the warning signs of Internal Control Problems with regard to Accounting System Unusual increase in customer refunds 8. Backlog in recording transactions C. Differences between daily cash receipts and bank deposits D. Sudden increase in slow payments All the above 15. Cash is the mostly likely asset to be stolen or used improperly in a business. CA True B. False 16. What are two examples of trade receivables? A. Interest receivable and Receivables from officers B. Taxes Receivable and Notes Receivable C. Interest Receivable and Notes Receivable Accounts Recelvable and Notes Receivable 17. The most common transaction creating a receivable is selling merchandise or services on and is recorded as a debit to Accounts Receivable. True B. False 18. A major issue of selling merchandise or services on account (on credit) is that some wiW not pay their accounts A True False 19 The operation expenge recorded from uncollectible receivables is called Allowance for doubtful accounts Debt Expense C Accounts Receivable