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Q1. A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory.(2 marks)

January 1:	Purchased 100 units at SAR10 per unit
February 5:	Purchased 60 units at SAR 12 per unit
March 16:	Sold 40 Units for SAR 16 per unit

1. Explain the four inventory valuation methods.
2. Prepare general journal entries to record the March 16 sale using the
   1. FIFO inventory valuation method.
   2. LIFO inventory valuation method.

Q2. The office manager of ABC company has the authority to the whole financial operations. He authorizes activities, controls the companys expenses, records the companys transactions, and rarely takes vacation.

The owners of the company are happy with his work since the company is making a profit. You are giving the opportunity to educate the owners about the risk of not implementing internal control. What would be your advice? (2 marks)

Q3. At the end of the month, XYZ companys bank statement is different from the cash book balance. How would the company do the bank reconciliation? (1mark)