13. Which inventory costing method results in the lowest reported net income when prices are rising? 

14. If a company mistakenly counts its ending inventory as higher than its actual amount, what is the effect on net income?

Internal Controls at PrimeBrew CoffeePrimeBrew Coffee, a growing chain of cafés, has been experiencing financial discrepancies due to missing inventory and unauthorized employee discounts. Identify four key internal control measures PrimeBrew should implement and provide an example of how each measure would prevent fraud or financial misstatements.

9. ABC Retail reconciles its bank account every month. In July, an employee forgot to record a $2,000 check that cleared. What effect does this have on financial statements? 

4. The going concern assumption assumes that:

7. The revenue recognition principle states that revenue should be recognized when:

12. If a company forgets to make an adjusting entry for an accrued expense, what happens to net income?

5. What is the purpose of the matching principle?

8. Home Depot had $30,000 in revenue and $18,000 in expenses. What is its net income?

2. What is the fundamental accounting equation?