3. (TCO 5) Internal Control Procedures are required to safeguard company assets

3. (TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business.
(1) Explain how smart hiring practices can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be
implemented

4. (TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the Last in
First out (LIFO) method is applied (10 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit.

5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the
Current Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business. (10 points)