1. To overstate earnings a company canA. overstate expenses and overstate revenue.B. overstate receivables and understate payables.C. understate unearned revenue and understate property plant and equipment.D. understate expenses and understate revenue.2. Physical inventory counts must be doneA. when using bar-code scan technology.B. when using the periodic method of inventory.C. regardless of method inventory.D. when using the perpetual method of inventory3. Which of the following may not limit the effectiveness of internal control systems in an organization?A. Poorly designed controlsB. Duties not segregatedC. Costs not worth benefitsD. Understanding of policies and procedures4. If current assets decrease and current liabilities increase the current ratioA. decreases.B. remains the same.C. will change based on the change in total assets.D. increases.