Multiple choice

1. In large companies, the independent internal verification procedure is often assigned to

 management. 

computer operators. 

outside CPAs. 

internal auditors.

2. Shandy Shutters has the following inventory information.

Nov.1Inventory15 units @$8.00

8Purchase60 units @$8.60

17Purchase30 units @$8.40

25Purchase45 units @$8.80

A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand.

 Assume a periodic inventory system is used. Ending inventory under FIFO is

 $846. 

$863. 

$438. 

$421.

3. Which of the following would not be reported on the balance sheet as a cash equivalent?

 Sixty-day certificate of deposit 

Money market savings certificate 

Six-month Treasury bill 

Money market fund

4. If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts 

for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts 

Petty Cash, $95. 

Petty Cash, $100. 

Cash, $100. 

Cash, $95; Cash Over and Short, $5.