True/False 1) The purposes and principles of internal control are fundamentally the same across the globe. However, cultural differences sometimes suggest different emphasis on the mix of control procedures 2.) Controls of cash disbursements are important for companies as most large thefts occur from payment of fictitious invoices 3.) A good voucher system includes a set of procedures and approvals designed to control cash disbursements and the acceptance of obligations. 4.) An effective voucher system has limited ability to prevent a dishonest employee from colluding with a dishonest supplier to fraudulently acquire cash payments for goods and services not received 5.) An example of the rationalization factor of the fraud triangle would be an employee justifying stealing money from his or her employee by stating, "I am underpaid and deserve a raise". 6.) Notes receivable are classified as current liabilities regardless of the time to maturity 7.) The percent of sales method for estimating bad debts assumes that a given percent of a company's credit sales for the period are uncollectible. 8.) When using the allowance method of accounting for uncollectible accounts, the entry to record the estimated bad debts expense is a debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts. 9.) The direct write-off method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectible. 10.) The formula for computing interest on a note is: Principal of the note x Annual interest rate x Time expressed in fraction of year