Physical Inventory Counts

question 180

Multiple Choice

Physical inventory counts:

• A)Are not necessary under the perpetual system.
• B)Are necessary to measure and adjust for inventory shrinkage.
• C)Must be taken at least once a month.
• D)Require the use of hand-held portable computers.
• E)Are not necessary under the cost-to benefit constraint.

Recognize the conditions under which a principal’s ratification of a contract can be implied from conduct.

Identify the scenarios in which principals are liable for agents’ misrepresentations.

Understand the concept of direct liability and respondeat superior liability.

Know how express authority is created and utilized in agency relationships.

---

Definitions:

MBTI

Myers-Briggs Type Indicator, a personality inventory based on Jungian psychological types, used to understand individual differences.

TAT

A projective psychological test (Thematic Apperception Test) that asks respondents to tell stories about ambiguous pictures.

CPI

Consumer Price Index, a measure assessing the average change over time in the prices paid by consumers for a basket of goods and services.

Projective Tests

Types of personality tests in which individuals are presented with ambiguous stimuli and their responses are interpreted to uncover underlying thoughts, feelings, and traits.