Please answer a minimum of two (2) from the list below (your choice): 1. Define cash equivalents. 2. What is the primary function of internal controls procedures in accounting? What is meant by separation of duties? What are the responsibilities of management described in Section 404 of the Sarbanes-Oxley Act? What are the responsibilities of the company's auditor? 3. Would restricted cash be included in the reconciliation of cash balances on the statement of cash flows? Explain. What is a compensating balance? How are compensating balances reported in the financial statements? 4. Explain the difference between a trade discount and a cash discount. Distinguish between the gross and net methods of accounting for cash discounts. 5. How are sales returns treated in the accounting records? 6. Explain the typical way companies account for uncollectible accounts (bad debts). When is it permissible to record bad debt expense only at the time when receivables actually prove uncollectible? 7. Briefly explain the difference between the income statement approach and the balance sheet approach to estimating bad debts. While both methods are allowed, which do you think the FASB encourages companies to follow? 8. Explain any possible differences between accounting for A/R factored with recourse compared with one factored without recourse? 9. What is meant by the Discounting of a Note Receivable? Describe the four-step process used to account for discounted notes