Which of the following statements is correct The responsibilities for ordering, receiving, and paying for merchandise should not be assigned to the same individual External auditors are usually employees of the company An effective control activity results when at least two individuals are assigned to one cash drawer so that each can serve as control for the other. Fraud is an unintentional act to misappropriate steal assets or misstate financial statements Question 23 (1 point Which of the following statements is correct? O drawing on an operating line of credit results in a negative cash balance, this is known as bank indebtedness (a current liability When paying inventory which has previously been bought on account, the accounts payable account has to be credited Unearned revenue is a financial liability, u nts is correct. Question 21 [1 point) When a customer transfers $12,000 to pay for an outstanding amount of previously bought products, the receiving company records the following debit Accounts Receivable, $12,000 credit Cash, $12,000 debit Cash, 512,000, credit Revenue, $12.000 debit Cath. 12000 credit Accounts lleceivable, 12.000 delat Revenue $12.000 credit Accounts Receivable 12.000 Question 19 (1 point) The Dividends Declared account is considered a permanent account appears on the income statement along with the expenses of the business increases on the debit side and decreases on the credit side. is reported under common shares in the balance sheet. Question 2011 point) A credit to a liability account indicates a decrease in the amount owed to creditors. will always increase shareholders' equity. indicates an increase in the amount owed to creditors. be accompanied by a debit to an asset account