An Assessment to Determine Compliance Performed by an Authorized Agency

question 5

Multiple Choice

An assessment to determine compliance performed by an authorized agency or organization is known as a (an) :

• A) External audit.
• B) Retrospective audit.
• C) Internal audit.
• D) Trend analysis.

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Definitions:

Paying Suppliers

The process of settling financial transactions with suppliers by transferring payment for goods or services received.

Inventory Period

The duration of time it takes for a company to sell its inventory and convert it into sales, often measured in days or months.

Slow-selling Merchandise

Items in inventory that move or sell at a slower pace than anticipated, often leading to excess stock and markdowns.

Cash Cycle

Refers to the amount of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.