What Is the Internal Control Advantage of Using the Net

question 55

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 net income.
• D) It results in a higher quality of inventory on hand for customers.

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Definitions:

Diagnosis

The process of diagnosing a problem or sickness by looking at the signs presented.

Treatment

The management and care of a patient for the purpose of combating a disease, disorder, or injury, involving a range of medical or psychological strategies.

Study

The act of applying the mind to acquiring knowledge on a subject, through reading, investigation, or practice.

Test-retest Reliability

A measure of the consistency of a psychological test or assessment over time when administered to the same individuals.