Periodic or Cycle Counts of Selected Inventory Items Are Made

question 60

Multiple Choice

Periodic or cycle counts of selected inventory items are made at various times during the year rather than during a single inventory count at year-end. Which of the following is necessary if the auditor plans to observe inventories at interim dates?

• A)Complete recounts by independent teams are performed.
• B)Perpetual inventory records are maintained.
• C)Unit cost records are integrated with production accounting records.
• D)Inventory balances are rarely at low levels.

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Definitions:

Egalitarian

Pertaining to or believing in the principle that all people are equal and deserve equal rights and opportunities.

Benefits Principle

The benefits principle is a taxation theory that argues taxes should be levied on individuals according to the benefits they receive from government services.

Public Education

A universally accessible system funded and administered by government agencies aiming to provide free education to all children.

Property Taxes

Levies on property ownership, typically based on the property's value, used to fund local services such as schools, roads, and public safety.