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ExamPart 1(1 point each).1 Which of the following are principles of internal control? (Select all that apply).a Having a yearly audit by an independent auditing firm.b Segregation of duties.c Documentation procedures.d Establishment of responsibility.e Physical, mechanical and electronic controls.2 Which of the following belong in the current assets section of the balance sheet? (Select all that apply).a Cash.b Short term investments.c Inventories.d Construction in process.e Prepaid expenses.3 Characteristics of a bond include: (Select all that apply).a Face value.b Maturity date.c Contractual interest rate.d A bond certificates.4 Which statement(s) is(are) true regarding the Price-Earnings (PE) ratio? (Select all that apply).a The ratio of price to earnings will earnings will be higher if investors think earnings will increase substantially in the future and are willing to pay more for stock.b The ratio of price to earnings will be lower if investors think earnings will not be strong.c The price-to-earnings ratio is of no importance to investors.d The price to earnings ratio takes earnings per share divided by cost o

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