7) Internal control is a process designed to ensure a) b) c) d) reliable financial reporting. effective and efficient operations. compliance with applicable laws and regulations. I nternal control is designed to ensure all of the items described in the answers. The amount of net sales is determined by which of the following formulas? a) Gross sales+ Sales Returns and Allowances-Sales discounts b) Gross sales + Sales Returns and Allowances + Sales discounts c) Gross sales -Sales Returns and Allowances -Sales discounts 8) lowances + Sales discounts cash receipts? 9) Which of the following is an internal control procedure designed to protect a) Record cash collections immediately. b) Provide customers with receipts. c) Deposit cash collections immediately d)All of the answers described internal control procedures designed to protect cash receipts Rex Company's bank statement shows a $200 NSF check. To determine the true cash balance the a) amount of the NSF check must be added to the unadjusted bank balance. b) amount of the NSF check must be subtracted from the unadjusted book balance. c) amount of the N 10) amount of the NSF check must be subtracted from the unadjusted bank balance. Based on the fraud triangle, which of the following is not a factor that motivates fraud? a) Opportunity b) Pressure c) Rationalization d) Punishment 11) 12) The cost of goods sold account is classified as a. an expense. b. a contra asset. c. a liability d. an asset. In a company's bank reconciliation, an outstanding check is a check that: a. is guaranteed for payment by the bank. b. has been issued by the company but has not been presented to the bank for 13) payment. holder's bank account. has been presented to the bank for payment but has not been reported on the bank c. has been written for an amount that is greater than the balance in the account d. statement