the letter of the best answer for each of the MULTIPLE CHOICE-Cirede the letter of the best answer Independent questions. (15 Marks) 1) da Revenue Agency who evaluate the internal controls of internal auditors a) are hired by CPA firms to audit business firms. are employees of the Canada Revenue Agency who evaluate the Companies in tax returns. c) evaluate the system of inte they are not independent, Valuate the system of internal control of the company that employ c d) e system of internal controls for the companies that employ them. w that employs them because 2) A company that sells goods to customers is known as a a) proprietorship. b) corporation c) merchandising company. d) service company. 3) If goods in transit are shipped FOB destination, a) the seller has legal title to the goods until they are delivered. b) the buyer has legal title to the goods when a public carrier accepts the goods from the seller. c) the buyer is responsible for paying the shipping charges. d) no one has legal title to the goods until they are delivered. 4) The retailer considers VISA and MasterCard sales as a) cash sales. b) promissory sales. c) credit sales. d) contingent sales. 5) A customer uses the better life Gym credit card to charge a treadmill R$1.000 and the Interest charges etter Life Gym per annum the is not paid in 30 days. The to pay the bul within 30 days and interest is dded to the customer's count. What is the amount interest a) S30 b) S 15 c) S 10 d) S6 6) in a perpetual inventory system using the earnings approach, cost of goods sold is recorded a) on a daily basis b) at the end of the accounting period c) on an annual basis d) with each sale. 7) A company purchased Inventory as follows: 200 units at $9 300 units at $ 10 The weighted average unit cost for inventory is a) S 9.00 b) $ 9.50. c) $ 9.60 d) $ 10.00. 8) Water Inc. maintains a petty cash fund with a balance of $100. A disbursement of $10 from the fund for postage is recorded as an expense in the accounting records a) at the time the cash is taken from the fund. b) when the postage is used. c) when the petty cash fund is replenished. d) when the adjusting entries are prepared at year end. FMGI GST/HST paid on the purchase of inventory is dditional cost that must be absorbed by the merchandise company of included in inventory because it is recoverable. recorded as an operating expense on the income statement Ped as additional freight costs and included in the calculation of the cost of goods sold. - Me receivable that is usually evidenced by a formal instrument of credit a) trade receivable. b) note receivable. c) accounts receivable. d) note payable 12) I ending inventory is overstated in 2021, and no further errors are made in 2022, then profit will be a) overstated in 2021 and understated in 2022. b) understated in 2021 and overstated in 2022 c) overstated in both 2021 and 2022. d) overstated in 2021 and correct in 2022. 12) Revaluation of inventories to net realizable value should occur a) only if the amount is material. b) at year end only c) in the period during which the decline occurs. d) at management's discretion. Uunung 1 13) A company maintains the asset account Cash in Blankens books, while the bank mawa reciprocal account that is a) a contra-asset account b) a liability account c) also an asset account d) an owner's equity account. ank, on its books, while the bank maintains a 14) Bank errors a) occur because of time lags. b) must be corrected by debits c) must be corrected by the bank. d) are corrected by making an adjusting entry on the depositor's books. 14) The collection period ratio is a measure of the company's a) liquidity. b) solvency. c) efficiency. d) profitability 15) Which of the following does not belong on a single-step income statement? a) net sales b) salaries expense c) gross profit d) rent revenue