Multiple choice:

Question 1) Limitations of internal control include:

a. Human error.

b. Human fraud.

c. Cost-benefit standard.

d. Human error and fraud.

e. All of these answers are correct.

Question 2) An income statement on which the cost of goods sold and operating expenses are added together and subtracted from net sales in one step to get net income is a(n):

a. Balanced income statement.

b. Single-step income statement.

c. Multiple-step income statement.

d. Merchandise income statement.

e. Unclassified income statement.