1. Internal controls include the policies and procedures a company implements to protect against theft of assets, to promote efficiency, and to ensure compliance with laws and regulations. (True or False)
2. In a perpetual inventory system, only one journal entry is required to record the sale of merchandise. (True or False)
3. FOB shipping point means that ownership of goods passes to the buyer when the goods reach the buyer. (True or False)
4. A physical count of inventory is performed annually in both a perpetual inventory system and a periodic inventory system.(True or False)
5. The Tuck Shop began the current month with inventory costing $20,000, then purchased inventory at a cost of $47,000. The perpetual inventory system indicates that inventory costing $52,128 was sold during the month for $52,000. If an inventory count shows that inventory costing $13,700 is actually on hand at month-end, what amount of shrinkage occurred during the month?