Styles 8) The principle or concept which requires that accountants record amortization expense on equipment is the: a. Matching Principle b. Revenue principle Cost principle d. Time period concept c. 9) An increase in the cost of goods sold would cause a company's profit margin to a. b. increase. decrease. remain unchanged. Must be offset by an increase in the selling price. C. d. 10) The primary objective of financial accounting is: a. To help organizations keep track of financing activities b. To provide external reports to help users analyze an organizations activities. c. To help an organization define its ideas, goals and actions. d. To help an organization to keep track of its buying and selling of resources. 11) Ethics: a. Are beliefs that separate right from wrong and help to prevent conflicts of interest. b. And law often coincide. C. Are very important considerations for accountants d. All of the above IL FILIPIesuiiternal control include: a. b. C. Establish responsibilities. Maintain adequate records, Insure Assets and bond key employees d. All of the above 13) The impact of technology on internal controls includes: a. Reduced processing errors. b. Elimination of the need for regular audits C. More efficient separation of duties. d. Reduced processing errors and fewer hard copies of source documents. 14) Which of the following is not an element of internal control C. a. Assigning responsibilities to individuals who have the authority to administer them b. Separation of duties whenever possible Assigning to one individual the responsibility for accounting for and custody of assets d. Relying on internal and external audits 15) When closing entries are made: a. All ledger accounts are closed to start the new fiscal period. b. All temporary accounts are closed but not the permanent accounts. c. All real accounts are closed but not the temporary accounts. d. All permanent accounts are closed but not the temporary accounts