Question

1) Which of the following would indicate poor internal controlover accounts receivable?

	The same person handling cashreceipts also records the accounts receivable transactions.
	The person handling cash receiptspasses the receipts to someone who enters them into accountsreceivable.
	The mailroom employees open themail and give the cash receipts to another employee.
	The person who handles accountsreceivable would not write off accounts as uncollectible.

2) Accumulated depletion is a(n)

	contra-asset account.
	cash account.
	contra-liability account.
	expense account.

3) Allied Industries reported net income of $52,000,depreciation expenses of $13,000, a gain on a land sale of $3,000,and a decrease in accounts receivable of $1,500. Under the indirectmethod, net cash flows from operations is

	$63,500.
	$66,500.
	$69,500.
	$60,555.