Multiple Choice Questions

5. 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 plan. C) The assessment of the degree of compliance with company policies and public laws. D) The evaluation of performance. 6. Link Company is preparing their financial statements. Gross margin is normally 40% of sales. 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) $12,000. B) $14,000. C) $16,000. D) $24,000