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1. Which of the following is not part of the fraud triangle?
B. Perceived opportunity
D. Perceived pressure
2. If the replacement cost of inventory is less than its historical cost, the company will write down the
A. increasing cost of goods sold and decreasing inventory.
B. making a note in the financial statements only.
C. increasing inventory and decreasing cost of goods sold.
D. increasing inventory for replacement cost and decreasing inventory for historical cost.
3. _______ occurs if a disgruntled employee convinces another to steal from the company.
B. A control activity
D. The control environment
4. A new car lot would probably cost its inventory using the _______ method of inventory costing.
D. moving average
5. Land is an example of a
A. long-term liability.
B. long-term asset.
C. current liability.
D. current asset.
6. Michelle, a customer of Regal Company, returned $45 of goods that were purchased on account. Under