Reference no: EM132953396

Problem 1) Who should be responsible for preparing the bank reconciliation?

A) the person who makes the deposits

B) the person who writes the cheques

C) the person who maintains the accounting records

D) a person not involved in the day-to-day banking activities

Problem 2) Opportunities for employee fraud arise when

A) an employee is in charge of purchasing, inspecting, and recording assets.

B) employees verify each other's work.

C) an employee has clear documentation procedures.

D) an employee is responsible for making the daily cash bank deposit.

Problem 3) Use of the FIFO cost formula means that

A) the perpetual costing system is used.

B) the ending inventory contains the oldest costs.

C) the periodic costing system is used.

D) the ending inventory contains the most recent costs.

Problem 4) The inventory write-down that results from the application of the lower of cost and net realizable value rule is often hidden in the

A) selling expense.

B) inventory account.

C) cost of goods sold.

D) loss due to market decline of inventory.