Which of the following statements is correct? Cost of goods sold computed under a periodic system would be higher than under a perpetual system. Under a perpetual system, the Merchandise Inventory account is only updated once per period. The value of inventory computed under a periodic system would be lower than under a perpetual system. Under a periodic system, the Merchandise Inventory account is only updated once per period, if ending inventory is overstated in 2021, and no further errors are made in 2022, then profit will be overstated in 2021 and understated in 2022. understated in 2021 and overstated in 2022. overstated in both 2021 and 2022. overstated in 2021 and correct in 2022. The two inventory cost formulas will result in the following comparative effects on profit during a period when prices aerisire FIE Weighted Average Higher No effect Higher Lower Lower Higher No effect No effect From an internal control standpoint, the asset most susceptible to improper diversion and use is O short-term investments. O cash. O accounts receivable. O inventory. An employee authorized to sign cheques should not record O owner cash contributions. O cash payment transactions. sales transactions. O mail receipts. ma Which of the following is not considered a control activity over cash payments? Use remittance advices, cash register tapes, and deposit slips. Use electronic payments when possible. Compare cheques with invoices Different individuals approve and make payments. Marigold filled up her vehicle using her debit card. The cost of the fill up was $60.00. Each time a customer uses a debit card Petro Canada is charged a transaction fee of $0.50. The entry to record the transaction by Petro Canada is Accounts Receivable 60.00 Sales 60.00 Cash 60.00 Sales 60.00 Accounts Receivable 59.50 Credit Card Expense 0.50 Sales 60.00 Activate Windo Cash 59.50 0.50 Debit Card Expense Which of the following is not an example of an estimated liability? O contingencies O employee benefits payroll deductions O warranties Disclosure of a contingent loss is usually made parenthetically, in the body of the balance sheet. O parenthetically, in the body of the income statement. O in a note to the financial statements. O in the management discussion section of the financial statement. HST (harmonized sales tax) collected by a retailer is recorded by O crediting HST Recoverable. O debiting HST Expense. O crediting HST Payable. O debiting HST Payable. The entry to record the proceeds upon issuing an interest-bearing note is: O Interest Expense Cash Notes Payable O Cash Notes Payable O Notes Payable Cash O Cash Notes Payable Interest Payable