Questions

This questions are multiple choice:

1. The lower of cost or market rules apply when:
   1. The market value of the inventory is higher than the cost in the books
   2. The market value of the inventory is lower than the cost in the books
   3. The market value of the inventory is higher than the cost to the consumer
   4. The market value of the inventory is lower than the cost to the consumer
2. Special Journals are used to:
   1. Increase efficiency
   2. Reduce costs
   3. Reduce the number of similar journal entries prepared
   4. All of the above
   5. None of the above
3. Segregation of duties is one example of:
   1. Generally Accepted Accounting Principles
   2. FASB
   3. Internal Controls
   4. Accounting Cycle
4. Which of the following is NOT a generally accepted accounting principle:
   1. Balance Principle
   2. Matching Principle
   3. Revenue recognition principle
   4. Consistency principle
5. When preparing bank reconciliation, you notice that a $500 check for rent cleared the bank correctly but was only listed on the books as $50. Which of the following is needed?
   1. Add to the bank balance
   2. Subtract from the bank balance
   3. Add to the book balance
   4. Subtract from the book balance