Which Internal Control Procedure Is Followed When a Physical Count

question 116

Multiple Choice

Which internal control procedure is followed when a physical count of inventory is performed in a perpetual inventory system?

• A) Segregation of duties
• B) Safeguarding assets and records
• C) Independent verifications
• D) Proper authorizations

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Unsecured Parties

Creditors or entities that hold claims or debts without a guarantee or collateral to secure the debt.

Secured Creditors

are creditors who hold a security interest in the debtor's assets as collateral for the money lent, giving them a claim to such assets in case of default.

Secured Interest

A legal claim or lien on collateral that gives a creditor the right to take property if a debtor fails to fulfill their obligations.