To Ensure the Accuracy of the Inventory Summary Sheets During

question 74

Multiple Choice

To ensure the accuracy of the inventory summary sheets during a physical inventory count,

• A)the employee is required to count all items twice for the sake of verification.
• B)the items counted are compared to the inventory account balance.
• C)a second employee or auditor counts the inventory and compares the result to the count made by the first employee.
• D)prenumbered inventory tags need not be used.

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Definitions:

Natural Monopolies

Natural monopolies occur in industries where the costs of production are lowest when only one firm provides the product or service, often due to high infrastructure costs making competition impractical.

Too Much Labor

A situation where there is an excess supply of labor in the market, leading to unemployment or underemployment.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 to prohibit monopolies and restrict business practices that reduce market competition.

Monopolization

The process or state by which a single company gains exclusive control over a market, eliminating competition, and often leading to higher prices and reduced quality for consumers.