Multiple choice

1. Which of the following would probably not cause inventory shrinkage?

A. Spills of items

B. Employee theft

C. Correct counting of all inventory

D. Spoilage of items

 2. Goods available for sale are $350,000; beginning inventory is $24,000; ending inventory is $32,000; and cost of goods sold is $275,000. The inventory turnover is

A. 8.59.

B. 9.82.

C. 11.46.

D. 12.50.

3. Which items may not limit the effectiveness of internal control systems in an organization?

A. Properly designed controls

B. Costs not worth benefits

C. Collusion

D. Overriding controls

4. The balance sheet format that lists assets above liabilities is the _______ form.

A. report

B. liquidity

C. account

D. alphabetical