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The two main inventory accounting systems are the A. perpetual and periodic. B. purchase and sale. C. returns and allowances. D. cash and accrual. Answer: 2. Which of the following is a benefit provided by internal control? A) It guarantees timely collection of accounts receivables. B) It ensures that collusion will never happen. C) It guarantees that a business makes profit. D) It promotes operational efficiency: Answer: 3. Which of the following describes the risk assessmient component of internal control? A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate. B) Risk assessment is the "tone at the top" of the business. C) A company must identify its risks and take necessary steps to minimize them. D) Risk assessment is designed to ensure that the boginess's goals are achieved. Which of the following is an attribute of the internal control procedure - competent, reliable, and ethical personnel? A) providing cross training to allow sales personnel to record revenue transactions B) the need to train and supervise employees. C) monitoring of internal controls by external auditors D) purchase of burglar alarms 5. Which of the following describes the environment in internal control? A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate. B) The environment is the "tone at the top" of the business. C) The environment is designed to ensure that the business earns profit. D) A company must identify its risks