Key segregations of duties in the inventory management process include all of the following except separating:
A. Cost accounting from review of variance reports.
B. Inventory management from cost accounting.
C. Cost accounting from the general ledger function.
D. Supervision of physical inventory from inventory management.
A. Cost accounting from review of variance reports.
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Which of the following formulas represents working capital?
A) ?Current assets - current liabilities B) ?Quick assets - current liabilities C) ?Current assets ¸ current liabilities D) ?Quick assets ¸ current liabilities
In a small business, because it is often cost-prohibitive to hire extra employees, the lack of certain separations of duties can best be overcome by
A) bonding the employees. B) getting the owner actively involved. C) hiring only honest employees. D) holding one person responsible for a given set of transactions.
Which of the following methods is used by companies for monitoring and controlling forecasts?
A. tracking signals B. trend charts C. seasonal indices D. control signals
In most businesses, the physical flow of goods occurs on a FIFO basis, but a different cost flow method is allowed under generally accepted accounting principles.
Answer the following statement true (T) or false (F)