1.Which statement about internal controls over cash iscorrect?

A.A bank reconciliation is the only control required for cash.

B.A bank reconciliation is designed to prevent problems from happening.

C.A bank reconciliation is designed for detection of problems after the fact.

D.A bank reconciliation is a tool to investigate employee fraud.

2.Which statement is correct for about inventorysystems?

A. The final amounts reported in statements are the same under both the periodic and perpetual systems.

B. Cost of goods sold is a not a calculated number under the periodic inventory system.

C. The periodic inventory system provides more information to allow an enterprise to better manage its inventories.

D. The periodic inventory system continuously updates information about the amount of inventory on hand.

3. What costs are NOT included in the cost ofinventories?

A. Costs to deliver raw materials to the company.

B. Labour used to make the finished product.

C. Costs to ship goods to customers.

D. Raw materials.

4. Satellite Corporation has the following investments at December31, 2020:

Historical Cost Fair Value Fair Value Fair Value Sept. 30, 2019 Sept, 30, 2020 Dec. 31, 2020 Shares of ABC $25,000 $15,000 $25,000 $30,000 Bonds of Brooke 10,000 12.000 11,000 12,500 (purchased at par value) Shares of Cooks Town 12,000 18.000 16,000 16,000 ( Satellite holds 35% of the outstanding voting shares of Cooks Town) Shares of Davenport 18,000 20,000 19,000 19,000