QUESTION 19 The normal account balances of Sales Revenue, Sales Returns and Allowances, and Sales Discounts are respectively: O a.credit, debit, debit. Ob.credit, credit, credit. Occredit, debit, credit. O d.debit, credit, debit. QUESTION 20 When an accounts payablo clerk also has access to the approved supplier master file for purchases in a company, the control principle of 10 pa a independent internal verification is violated Ob establishment of responsibility is violated. O c. segregation of duties is violated Od documentation procedures is violated QUESTION 21 Company XYZ uses the percentage-of-receivables basis and the uncollectible accounts for the year are estimated to be $38,000 of the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment, what is the amount of bad debt expense for the period? 10 p O a. $7,000 Ob.$31,000 OC$38,000 O d. $45,000 QUESTION 22 One of the following is not an objective of a system of internal control. Which is it? O a Enhance the accuracy and reliability of accounting records O b. Reduce the risks of errors O c. Safeguard company assets O d. Overstate liabilities in order to be conservative QUESTION 23 When a company fails to record estimated bad debt expense, O a. cash realizable value is understated. O b.revenues are understated. O c. expenses are understated. O d.receivables are understated. QUESTION 24 The sale of receivables by a company O a. can be a quick way to generate cash for operating needs. O b. is an indication that the business is owned by a factor O c. indicates that the business is in financial difficulty O d. is generally the major revenue item on its income statement. QUESTION 25 During periods of rising prices, the inventory method which results in the inventory value on the balance sheet that is closest to current cost is the O a. LIFO method b. average-cost method. OC FIFO method. O d. tax method QUESTION 26 One of the following assets is most susceptible to misappropriation. Which is it? O a. Accounts receivable O b. Short-term investments O c Inventory O d. Cash QUESTION 27 10 On November 12, 2021, Kardashian Company has cash sales of $6,000 from merchandise having a cost of $3,600. The entries to record the day's cash sales will include: O a. a $6,000 debit to Accounts Receivable. O b.a $6,000 credit to Cash. Oc a $3,600 credit to Inventory O d. a $3,600 credit to Cost of Goods Sold