truth/ false

1. The Sarbanes-Oxley Act of 2002 applies to all publicly held companies. 2. The internal control environment is enhanced by the hiring and retention of competent, honest employees. Information and communication are essential elements of an organization's internal control Money orders are considered cash. A bank reconciliation is an important part of the system of internal controls. Outstanding checks are checks that have been issued but have not cleared by the bank All receivables that are expected to be realized in cash within a year are presented in the current assets section of the balance sheet. 5. 6. accounts receivable and notes receivable represent claims that are expected to be collected in cash The due date of a 60-day note dated July 10 is September 9 10. Generally accepted accounting principles do not, normally allow the use of the allowance method of accounting for uncollectible accounts Allowance for Doubtful Accounts is a contra liability account. 12.- _ The maturity value of a 12%, 60-day note for $1,000 is $1,020. (Assume 360 days in a year) 13 Average cost is a method of inventory valuation 14. Merchandise Inventory is presented on the balance sheet in the current assets section Merchandise Inventory is presented on the balance sheet in the current assets section The FIFO method of costing inventory is based on the assumption that costs should be charged against revenues in the order in which they were incurred