Which Statement Is Incorrect

question 42

Multiple Choice

Which statement is incorrect?

• A)Periodic inventory systems provide better control over inventories than perpetual inventory systems.
• B)Computers and electronic scanners allow more companies to use a perpetual inventory system.
• C)Freight-in is debited to Inventory when a perpetual inventory system is used.
• D)Regardless of the inventory system that is used, companies should take a physical inventory count.

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Definitions:

Vicarious Liability

Legal responsibility taken by one party for the actions of another, typically in an employer-employee relationship.

Independent Contractors

Individuals or entities hired to perform specific tasks or services for another entity under a contract, but who retain control over how those services are executed.

Constructive Notice

A legal concept where a person is deemed to have legal notice of a fact, even if they were not directly informed, often through public records.

Agency Relationship Law

Legal principles that govern the relationship between an agent, who acts on behalf of another person (the principal), and the principal, detailing duties, rights, and liabilities.