1. Multiple Choice 1) Inventory is recorded on which financial statement? A. Income Statement C. Statement of Retained Earnings B. Balance Sheet D. Statement of Cash Flows Internal Control Procedures, Monitoring & Evaluation 2) The 5 clements of internal control are Control Environment, A. Analyze the Risk C. Risk Assessment B. Tone at the Top D. Separation of Duties 3) The Control Environment is best summarized as A. Internal Control Procedures B. Evaluation C. Management's philosophy & operating style D. Information & Communication 4) Under the Direct Write Of Method, an Account Receivable is reduced and a is also recorded. A Contra Account C. Accounts Receivable B. Bad Debt Experise D. Allowance for Uncollectible Account 3) Authorization, recordkeeping and custodial duties should be perfomed by A yourself only C. your most senior employees B. your most responsible employees D. separate employees 6) One way for a company to detect employee fraud is to require all employees to A submit to a background check Csign an Employee Handbook B.take mandatory vacations D. make a Ponzi Scheme 7) When inventory is sold using the Last-in First-Out (LIFO) method, which inventory is treated as being sold first? A. the earliest inventory purchased C, the most recent inventory purchased B. the average inventory purchased D. the specific inventory used 8) When inventory is sold using the First-in First-Out (FIFO) method, which inventory is treated as being sold first? A the earliest inventory purchased Cthe most recent inventory purchased B. the average inventory purchased D. the actual inventory used 9) When inventory is sold, a A. Inventory Expense B. Sales Revenue is reported as an expense on the income statement. C. Inventory Sold D. Cost of Goods Sold (COGS) 10) Inventory is purchased on 1/1/19 and on 12/31/19. Under the FIFO method, which inventory is disposed of first? A inventory purchased on 12/31/19 C. inventory purchased on 1/1/19 B. inventory purchased on 7/1/19 D. All of the Above