Question

en 4 Short Answer) (20 points) 1. Annabelle Corporation located in NY purchases inventory from Masse Corporation located in FL The terms of the purchase state FOB shippine point. When does Annabelle take ownership (title) to the inventory 2. Teddy Corporation purchases inventory at various points in 2016 COST OT inventory per unit increases with each purchase. what cost to assumption will produce the highest cost of goods sold and the lowest income? (FIFO, LIFO or Average Cost) 3. Molly Corporation requires that prospective employees submit to background tests, all employees who handle cash are bonded. This is an example of which internal control principle? a. Establishment of responsibility b. Segregation of duties c. Physical controls d. Human resource controls 4. Gunner Corp. maintains a perpetual inventory system. Is it necessary to take an ending physical inventory at the end of the accounting period to determine Cost of Goods Sold? 5. Graham Corporation requires that one employee records credit sales in the journal, a second person opens envelops and lists the deposits, and third person records the reduction on accounts receivable balance for that customer. This is an example of what internal control principle? a. Establishment of responsibility b. Segregation of duties c. Physical controls d. Human resource controls

Answer 1

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