A$)$ must have a eompriterized accoumiling system

D$)$ uses a perpetual inveritory system.

A company purchased imventor FOB shipping point, The shipping costs will be paid by the:

A$)$ Seller

B$)$ Purchaser

C$)$ Transportation company

D$)$ Buyer and the seller

The factor which determines whether goods in transit should be included in inventory is

$(1$ mark$)$

A$)$ physical possession.

B$)$ management's judgment.

C$)$ legal title $($ownership$).$

D$)$ whether or not the purchase price has been paid.

Internal controls are put in place mainly to safeguard and protect $(1$ mark$)$

A$)$ all statement of financial position accounts.

B$)$ assets.

C$)$ liabilities.

D$)$ equity.

Accounts Receivable are valued and reported on the Statement of Financial Position: $(1$ mark$)$

A$)$ at cash $($net$)$ realizable value.

B$)$ in the investment section.

C$)$ at gross amounts less sales returns and allowances.

D$)$ only if they are not past due.

bank reconciliation should be prepared $(1$ mark$)$

A$)$ Whenever the bank refuses to lend the company money

B$)$ When an employee is suspected of fraud

C$)$ To explain any differences between the books $($accounting records$)$ and the bank

statement balance