At the End of 2014, CNC Corporation's Accounting Information System

Multiple Choice

At the end of 2014, CNC Corporation's accounting information system produced the following trial balance: CNC completed the following transactions in January 2015: a.Purchased inventory on account, $300.
B.Collected cash from customers for prior year sales, $500.
C.Paid current month's wages, $900.
D.Had land appraised.Cost of doing the appraisal (paid in cash) , $700.Appraised value of land, $3,000.
E.Sold inventory with a cost basis of $200 on account, $800.
F.Declared dividends, $50.
G.Hired additional sales staff.Expected monthly salaries, $80.
H.Purchased supplies for cash, $150.
i.Paid creditors for previous purchases, $150.
j.Signed a contract for annual employee retreat, $450.CNC's operations are currently confined to a single state, but management is considering expanding to additional states.Which of the following statements is most true?

A) After the expansion, sequential numbering of source documents will no longer be an effective internal control.
B) After the expansion, the chart of accounts may need to use hierarchical coding.
C) After the expansion, CNC will add at least two steps to the accounting cycle.
D) After the expansion, CNC must employ more information technology in its accounting information system.