What Is the Internal Control Advantage of Using the Net

question 34

Multiple Choice

What is the internal control advantage of using the net method of accounting for merchandise purchases?

• A)It highlights the inefficiency of losing purchase discounts.
• B)It guarantees that all purchase discounts will be taken.
• C)It automatically increases a firm's cash balance.
• D)It results in a higher quality of inventory on hand for customers.

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Definitions:

Fungus

A kingdom of eukaryotic organisms that includes yeasts, molds, and mushrooms, which are distinct from plants, animals, and bacteria.

Helminth

Parasitic worms, including flukes, tapeworms, and roundworms, that can cause disease in humans.

Protozoan

A diverse group of single-celled eukaryotic organisms, many of which are parasitic.

Bacterium

A large domain of prokaryotic microorganisms, typically a few micrometers in length, that can exist as single cells or in clusters, and have various roles in the environment, medicine, and industry.