Q1. An adequate internal control would include: A. Withholding customer

receipts when necessary B. Allowing the same person to carry out all bookkeeping duties C. Using randomly numbered invoices D. Allowing the same person to handle bookkeeping and reporting E. Limiting checkbook access to designated employees. Q2. Under cash basis accounting, merchandises inventory becomes part of cost of goods sold when a company A. Purchase the inventory B. Pays for th inventory C. Receives payment from customer D. Receive inventory from the supplier E. Sells the inventory Q. 3. Which method of accounting requires that revenues be recorded in the period in which they are earned, and expenses be recorded in the period in which they are incurred? A. Cost B. Economic C. Cash D. Accrual E. Managerial Q4. What is an example of how cash basis accounting might be applied? A. Recording the expense before payment is made B. Recording revenue at the time payment is received C. Depreciating building using straight line depreciation D. Recording unpaid bills in the accounts payable account E. Recording cash payments received in advance of providing service as unearned revenue