BAT 4M
Weston Collegiate Institute
GEOGRAPHY 101
Unit 3 Activity 4
Unit 3 Test
1. Bajwa Inc. always has its annual inventory count completed by employees other than
those who responsible for storing and maintaining the inventory on a day-to-day basis.
This is an example of what type of internal control procedure?
a. Authorization
b. Documentation
...[Show More]
BAT 4M
Unit 3 Activity 4
Unit 3 Test
1. Bajwa Inc. always has its annual inventory count completed by employees other than
those who responsible for storing and maintaining the inventory on a day-to-day basis.
This is an example of what type of internal control procedure?
a. Authorization
b. Documentation
c. Independent verification
d. Segregation of duties
2. The specific identification method of costing inventories is a good choice when the
a. physical flow of units cannot be determined.
b. company sells large quantities of relatively low cost homogeneous items.
c. company sells large quantities of relatively low cost heterogeneous items.
d. company sells a limited quantity of high-unit cost items.
3. Two companies report the same cost of goods available for sale but each employs a
different inventory costing method. If the price of goods has increased during the
period, then the company using
a. LIFO will have the highest ending inventory.
b. FIFO will have the highest cost of good sold.
c. FIFO will have the highest ending inventory.
d. LIFO will have the lowest cost of goods sold.
4. Which of the following statements is correct with respect to accounting for inventories?
a. The FIFO method assumes that the costs of the earliest goods acquired
are the last to be sold.
b. It is generally good business management to sell the most recently
acquired goods first.
c. Under FIFO, the ending inventory is based on the latest units
purchased.
d. FIFO seldom coincides with the actual physical flow of inventory.
5. A good system of internal control
a. can never fail.
b. can be ineffective if employees collude.
c. will have costs
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