Safeguarding Inventory from Damage or Theft Is a Primary Objective

question 189

Essay

Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft.

---

Definitions:

Short-term Obligations

Financial liabilities that are due for payment within one year.

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance based on the accounting equation.

Asset Account

An account on a balance sheet representing tangible or intangible items of value owned by a company.

Trial Balance

A ledger balance sheet summarizing all accounts, showing equal totals for both credit and debit columns.