multiple choice questions, you must choose the correct answer. Then, explain why the other choices are wrong. (each choice must be given explanation as to why it is wrong

4. In a company whose materials and supplies include a great number of items, a fundamental deficiency in control requirements would be indicated if

a. a perpetual inventory master file is notmaintained for items of small value.

b. the storekeeping function were to be combined with production and record keeping

c. the cycle basis for physical inventory taking was to be used.

d. minor supply items were to be expensed when acquired.

5. For control purposes, the quantities of materials ordered may be omitted from the copy of the purchase order that is

a. forwarded to the accounting department

b. retained in the purchasing department's files.

c. returned to the requisitioner.

d. forwarded to the receiving department.

6. Which of the following procedures would best detect the theft of valuable items from an inventory that consists of hundreds of different items selling for P10 to P100 and a few items selling for hundreds of pesos?

a. Maintain a perpetual inventory master file of only the more valuable items with frequent periodic verification of the validity of the perpetual.

b. Have an independent CPA firm prepare an internal control report on the effectiveness of the administrative and accounting controls over inventory.

c. Have separate warehouse space for the move valuable items with sequentially numbered tags.

d. Require an authorized officer's signature on all requisitions for the more valuable items.