Following the List Below Is a Series of Descriptions of Inappropriate

question 31

Essay

Following the list below is a series of descriptions of inappropriate accounting procedures.
Required:
Indicate which item (or items)on the list was (were)violated in each description by placing the appropriate letter(s)in the space provided.

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Definitions:

Freight-In

The cost associated with transporting goods into a facility, usually included in the inventory cost of the goods purchased.

Periodic Method

An accounting inventory system where updates to the inventory records are made periodically at the end of an accounting period.

Net Purchases

The total amount of purchases minus purchase returns, allowances, and discounts received during a specific period.

Gross Profit

The difference between the revenue generated from goods or services sold and the cost of goods sold (COGS), before deducting overhead, payroll, taxation, and interest payments.