Under the concept of establishment of responsibility,how many people should have A) Everyone in the organization. B) An individual and his/her supervisor the ultimate responsibility? Q Only one individual.pervisor. D) The CEO 35. When is a physical inventory usually taken? When goods are not being sold or received. B) A) When the company has its greatest amount of inventory. ) At the end of the company's fiscal year. D) When the company has its greatest amount of Inventory and at the end of the company's fiscal year. All of the following statements are true regarding the periodic inventory system except A) Under the periodic inventory system, the balance of cost of goods sold is cakculated at the end of the B) Under the periodic inventory system, the balance in ending inventory is calk 36. period. lated at the end of the period. Using the periodic inventory system affects the balance sheet contents differently than when D) Under the periodic system, uses sep the perpetual system is used. a company uses separate accounts to record freight costs, returns, and discounts 37 The factor which determines whether or not go ods should be included na physical count of inventory is A) physcal possession. B) legal title. C) management's judgment. D) whether or not the purchase price has been paid. 38. Two categories of expenses in merchandising companies are A) cost of goods sold and financing expenses B) operating expenses and financing expenses. Q) cost of goods sold and operating expenses. D) other expenses and cost of goods sold. 39. Each of the following is a feature of internal control except A) an exdensive marketing plan B) bonding of employees C) separation of duties. D) recording of all transactions Quark Inc. jast began business and made the following four inventory purchases in June: 40. $ 825 1,120 1,140 150 units 200 units 200 units 150 units June 10 June 15 June June28 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is A) $1,105. B) $1,100 $1,170 D) $1,180. 41. Two individuals at a retail store work the same cash register. You evaluate this situation as A) a violation of establishment of responsibility B) a violation of separation of duties ) supporting the establishment of responsibility D) supporting internal independent verification